According to the paper, messages can be customised with the aid of advanced marketing tools, making e-mail recipients less conscious that they are sending a mass letter.New Products and Services When launching new services, tie-in resorts will run large-scale marketing campaigns. According to Hospitality, Sheraton Hotels and Resorts launched a $20 million marketing campaign in 2010 to highlight their $6 billion offerings redesign. Catchy, specialised slogans were used to promote new guest quarters, beds, and Internet- connected lobbies, emphasising the resort's targeted emphasis on mixing business and pleasure. \"Who puts bottom lines and bottoms up together?\" was one of the slogans. Websites are important marketing resources for many resorts, including All Seasons Resort Lodging. According to \"Internet Marketing and Distribution for Resorts,\" website marketing will help level the playing field between chain resorts and independent resorts. Professional photography, virtual tours, online videos, booking details, and online forms for making reservations can all be found on websites. They may also provide useful feedback forms to help resorts identify their strengths and areas for improvement. Mutual referrals can result from strategic online partnerships with complementary industries such as airlines, car rentals, or fare-finding websites. Collaboration The use of travel-related networking as a marketing strategy for resorts has proven to be effective. Companies with a large number of resorts and hotels can arrange destination sales trips for favoured or potential booking clients, such as ski groups, tour operators, event planners, or travel agencies, to experience the resort's specialised offerings. Resorts can also collaborate with local organisations to sponsor local events. The Sundance Film Festival and the Triple Crown World Series, for example, were both sponsored by All Seasons Resort Lodging in 2010. Placement of Products Resorts can promote their image by collaborating with businesses whose brand ideology aligns with theirs. For example, \"green design\" resorts might collaborate with vendors who sell organic or paraben-free spa items. Tourism marketing encompasses a wide range of activities, with ads and sales being just one of them. To begin with, travel marketing is a form of human activity that involves an exchange to meet the needs and requirements of the target audience. Let's take a look at 151 CU IDOL SELF LEARNING MATERIAL (SLM)
how tourism marketing firms (and tourism businesses) draw customers and the advertising strategies they employ below. First and foremost, remember to conduct market research and develop a marketing plan. Consider the commodity and the best way to show tourism attractions to potential customers. To begin, you must first determine what your target audience requires. Furthermore, you must market your services and content across a variety of platforms, including your website, social media channels, and email advertisements. 1. Showing online banners Considering internet marketing tools for the tourism industry is crucial. One of the most effective promotional ideas tourism businesses can employ is to invest in online advertising. Placing ad banners on certain websites, where users will be able to see your current promotions and offers, is a great idea to get more exposure. The websites you advertise on should be the types of sites your target audience visit. Be careful that you’re placing your ads where your ideal customer is visiting, otherwise you could be marketing to the wrong audience and your efforts will be in vain. You can use different sources and sites to place banners, just use top keywords in your Google search, like ‘top hotels’, ‘travel’, ‘top destinations’, etc 2. Using tourist promo videos This year, the World Tourism Organization, founded by the United Nations, selected the most attractive tourist promo videos shot around the world. It makes sense to use such promotional videos to inspire people. Using positive testimonials, as well as photos and videos of your clients enjoying themselves on your tour is the best way to demonstrate the value in what you offer. Most of the videos selected by the World Tourism Organization show visitors enjoying leisure activities, and everything are so beautiful in the videos. This is a great way to appeal to your customers. 152 CU IDOL SELF LEARNING MATERIAL (SLM)
Fig 8.1 Internet marketing tools for the tourism industry It is important to consider internet marketing tools for the tourism industry. Investing in online advertisements is one of the most important promotional strategies that tourism companies can use. Placing ad banners on websites where users can see your latest ads and deals is a perfect way to increase your visibility. Your ads should appear on websites that your target audience frequents. Make sure you're targeting your advertising to the right people; otherwise, you may be selling to the wrong people and your efforts would be in vain. To place banners, simply use top keywords in your Google search, such as \"top hotels,\" \"travel,\" and \"top destinations,\" among others. Taking Advantage Of Tourist Promo Videos The World Tourism Organization, which was created by the United Nations, chose the most appealing tourist promotional videos taken around the world this year. It makes sense to use promotional videos like these to motivate people. The best way to demonstrate the value of what you offer is to use positive testimonials, as well as photos and videos of your clients having a good time on your tour. The World Tourism Organization chose the majority of the 153 CU IDOL SELF LEARNING MATERIAL (SLM)
videos because they show tourists enjoying recreational activities and because everything in the videos is so beautiful. This is a fantastic way to entice your clients. Offline Promotion Application Business cards are essential for any company, but particularly for those in the travel and tourism industry. They are both practical and cost-effective. They will significantly boost your brand's credibility with your assistance, increasing the probability of interest from travellers and visitors. Travel agents may use postcards as a direct marketing tool. You will undoubtedly persuade potential customers to contact you by sending a vibrant postcard with a beautiful landscape of a tourist destination and a brief letter. High-quality flyers and brochures are the best way to provide a quick and interesting rundown of the services provided by your travel company. Your travel brochures will resonate with your audience and create interest in your brand if you use brand-oriented design. Accept Facebook Ads as a part of your marketing strategy. Search ads are excellent for tapping into pre-existing demand. You can, however, use Facebook advertising to generate new demand. According to Larry Kim, creator of Word Stream, this is how it works on Facebook: Promote: The brand promotes inspiring and unforgettable content created specifically for your target audience. Bias: People see the Facebook ad, but they don't always take action. They do, however, become skewed. People can either do a branded search for you or a non-branded search if they have a need that your product/service can address, but since they've heard of you, they're more likely to click on your organic search result or PPC ad (and convert). The goals of tourism promotion are to promote intercultural understanding, create job opportunities, and provide socioeconomic benefits to communities, particularly in rural and remote areas, as well as to work toward healthy and sustainable development and to preserve, enrich, and promote India's cultural heritage. To achieve sustainable growth, one of the main goals is to preserve and protect natural resources and the environment. Measures of security and safety Tourist security and safety initiatives are critical, both in terms of tourism growth and national pride. As a result, it will be given top priority in the national tourism growth plan. The federal government will work with state governments to implement appropriate 154 CU IDOL SELF LEARNING MATERIAL (SLM)
regulations on travel trade/tourist police for the safety and security of tourists, as well as to establish an institutional framework to handle complaints from tourists and the industry, in order to improve security perceptions among actual and potential visitors. Make Services a Reality Tourists must travel through many government departments in order to comply with different laws. That include things like getting visas, going through immigration screening, getting permission to enter certain places, paying fees for certain services, and so on. The government's goal will be to increase productivity in providing such services and make travelling to and within India a pleasant experience. Some of the significant facilitation services in this regard are the introduction of visa on arrival for at least 15 days at all airports, computerization of the visa problem system, streamlining of luggage handling systems at airports, and enhancing tourist facilitation services at airports by implementing technological solutions. Upkeep and enhancements To prevent negative effects on the natural environment and cultural heritage that make up the tourist attraction, tourism creation must be properly guided and supervised. Between conservation and growth, a careful balance must be struck. The government will continue to try to strike a balance by imposing planning constraints and educating the public about their rich heritage and enlisting their help in preserving and maintaining it. Assistance from all over the world Tourism is a global industry that requires feedback from a variety of international agencies as well as international cooperation. As a result, the government's strategy would be to promote constructive win-win partnerships with all foreign organisations and other nations. Exceptional brilliance Since tourism is a service industry, it must improve its service quality. The tourism policy will aim for excellence by instilling integrity in human resources by training and retraining, and by delivering a memorable visitor experience to both domestic and foreign visitors. Government's Responsibilities Tourism is a multi-sectoral industry that is influenced by many other aspects of the national economy. As a result, the state must maintain intergovernmental cooperation and linkages. It must also play an important role in the management and promotion of tourism. The government's basic position includes: • Planning tourism growth as part of a larger area development strategy. 155 CU IDOL SELF LEARNING MATERIAL (SLM)
• To promote private investment in the tourism sector, provide the required support facilities and incentives to both domestic and foreign investors. • Provide basic infrastructure, such as municipal planning and zoning arrangements. • In the tourism field, rationalise taxes and land policies in all states and union territories, as well as land owned by government entities such as railways. • Implement regulations to ensure social, educational, and environmental sustainability, as well as tourist safety and protection. • Ensure that the form and scale of tourism growth are appropriate for the area's climate and sociocultural environment. • Make sure the local community is completely engaged and reaps the benefits of tourism. • Establish a nucleus infrastructure in the early stages of development to demonstrate the area's potential. • Collaborate with the industry to increase the availability of qualified manpower, especially from the local population. • Conduct analysis, create master plans, and assist in the development of marketing campaigns. • Assist in the creation of a thriving tourism industry. • Collaborate with the industry to plan overseas promotion and marketing. The Responsibility of the Private Sector Tourism has risen to become the world's largest export industry, with the private sector playing a key role in this development all over the world. The private sector must view tourism investment from a long-term perspective and build the necessary facilities in areas defined for tourism growth, such as lodging, timeshare, restaurants, entertainment facilities, shopping complexes, and so on. To improve performance and profitability, non-core operations such as cleanliness and cleaning, luggage transportation, and vehicle parking facilities should be opened up to private operators at all airports, major stations, and interstate bus terminals. The private sector has a particular role to play, which includes: i. Assume collective responsibility for establishing business standards, ethics, and fair practises. ii. Create and maintain the required tourist facilities in all tourist destinations. iii. Ensure that visitor destinations are preserved and protected, and take the lead in green practices. iv. Involve the local community in tourism initiatives and ensure that the benefits of tourism are shared with them. v. Support the preservation of monuments, museums, and parks, as well as the provision of public amenities and facilities. 156 CU IDOL SELF LEARNING MATERIAL (SLM)
The Mission Of Voluntary Organizations Volunteers and voluntary organizations must contribute their knowledge and awareness of the local culture to complement the efforts of other sectors in providing a human touch to tourism and fostering local initiatives. A. Corporation Of The Public And Private Today, the private sector's role in tourism growth is recognized, and private involvement in tourism development is planned wherever possible. As a result, for tourism to continue to thrive, a fruitful and mutually beneficial relationship between the public and private sectors must be pursued by all available means. As a result, the government's strategy is to promote the formation of such a relationship. This will be accomplished through the establishment of a Tourism Development Authority comprised of senior government officials as well as tourism experts and professionals from the private sector. B. Tourism Advertising It is not the agencies themselves, nor even the organisational structure, that distinguishes tourism promotion bodies in different countries. The same types of tourism institutions can be found in almost every country. The only difference is in terms of authority - government vs. private sector. The government also plays a significant role in many developed countries and countries in transition when it comes to tourism. The balance of power for tourism promotion has changed in favour of the private sector in an increasing number of countries, including Europe, North America, and East Asia. Industry participants may have valuable expertise for market-driven advertising and marketing campaigns because the private sector is more entrepreneurial and sensitive than the government. Simultaneously, the government should have a longer-term vision and direction for tourism growth. Several aspects of tourism growth can be categorised as public goods. Efforts such as national image building, legislation, investment attraction, and infrastructure growth may not be pursued solely by the private sector due to the lack of immediate commercial benefits. As a result, the government continues to play an important role in promoting access to resources, property, and skilled workers. When there are structured structures in place to link businesses and business groups with government agencies, public-private partnerships work better. • Promotion in the United States In May–June 2009-10, the Ministry of Tourism launched a campaign titled \"Good Behavior towards Tourists,\" which featured Shri Aamir Khan. This 157 CU IDOL SELF LEARNING MATERIAL (SLM)
campaign aired on a variety of television stations. The Ministry also launched a ‘Generic Campaign' in the domestic market in August–September 2009–10 to promote India as a holistically appealing tourist destination. This campaign was broadcast on many television networks, as well as in national newspapers and regional dialects. The Ministry of Tourism also created four social awareness videos. As part of social awareness campaigns, television advertisements on the themes of \"honesty,\" \"hospitality,\" \"good behaviour against tourists,\" and \"proud to be an Indian\" were aired. 8.3 PROMOTION MIX The Promotion Mix is a combination of various promotional methods used by a company to develop, sustain, and increase demand for products and services. The fourth component of the 4 Ps of Marketing Mix is advertising, which focuses on raising consumer awareness and persuading them to make a purchase. The Promotion Mix refers to the set of resources that help a company achieve its promotion goal. Advertising, personal selling, sales promotion, public relations, and direct marketing are also part of the promotion mix. In order to provide a balanced mix of these promotional methods, marketers must consider the following issues. What is the most efficient method of informing the customers? Which marketing strategies should be used? Who will be the target of the promotion efforts? How much money do you have set aside for marketing? How will it be distributed among the promotional tools? Every component of the promotional mix has benefits and drawbacks. It takes time, commitment, and sometimes a little luck to find the right mix of promotional resources, processes, and platforms. 158 CU IDOL SELF LEARNING MATERIAL (SLM)
Fig 8.2 Promotion Mix Fortunately, making sure your customers hear your message loud and clear is easy. Let's look at the key elements of a promotional mix and how you can combine them to create a well- balanced and successful promotional mix for your company. The customer purchases a vacation based on promotional expectations formed by words, images, sounds, and other means. Via ads and the media, we build tourism experiences in our minds. The tourism product is also a discretionary (optional) product that will compete for the customer's time and resources with other discretionary transactions and important products of expenditure. The five attributes \"intangible,\" \"inseparable,\" \"variable,\" \"perishable,\" and \"discretionary\" indicate that the expertise in tourism and leisure marketing is in establishing the product's perceived value. 8.4 PUBLICITY 159 How Tourism and Leisure Advertising Works CU IDOL SELF LEARNING MATERIAL (SLM)
Advertising is a communication process. Ads should convince and recommend something that the user may not have considered before, and ads are used to do this. Advertising should have immediate and observable results. Advertising (communication) that is successful shifts consumers from \"knowledge of a commodity\" to \"reinforcing post-purchase satisfaction.\" Stage 1: Product Awareness: Make sure your target market is aware of your product. Stage 2: Comprehension: Potential buyers should be able to comprehend the product's functionality and benefits. Stage 3: Consumer Acceptance: Consumers must determine whether or not the product can suit their needs. Advertising is extremely important in this situation. Stage 4: Preference: Advertising must have a convincing reason for potential consumers to believe that the product meets their needs. Stage 5: Purchase: Advertising encourages consumers to take action, such as purchasing a product. This goal is inextricably related to sales promotions. Stage 6: Reinforcement: Confirming consumers' choices and instilling satisfaction with their decisions or purchases. What is the Process of Advertising? In today's campaign planning, four main models are used: Model for sales response: A simple price-based model is the sales response model. It promotes purchasing a commodity solely on the basis of its cost. Persuasion model: The persuasion model starts with the commercial, and if it's well-crafted, its influence and message should convince the viewer that the product on display is the best. A product's brand advantage is protected by emphasising a particular value. Product characteristics + added value = brand. Model of Participation: Its aim is to pique the consumer's interest and keep them engaged. Once the consumer is interested, a partnership is formed with them in order for them to feel positive about the product. The dedication to the product is the next step, which leads to increased sales. Model of saliency: It is dependent on a unique brand and product recognition. It brings the viewer closer to the brand's product on an emotional level. It creates the impression the \"that product is for me.\" INDONESIA 160 CU IDOL SELF LEARNING MATERIAL (SLM)
The popular perception of India in the West has long been either negative—including perceptions of widespread poverty, lack of sophisticated hygiene, and violent ethnic and religious clashes—or ambivalent, so the Indian government's Ministry of Tourism launched the \"Incredible India\" marketing campaign to highlight the country's rich culture, historic sites, tourist attractions, and general sense of equanimity. Tourism is a lucrative and rapidly growing global industry, so it's no wonder that India, as a developing country, is attempting to tap into it to improve its economy. Furthermore, India is seeking to improve its international security and diplomatic ties while also broadening and deepening its trade relationships, especially with the United States, so it is in India's best interests to promote a positive image of itself among American and western voting populations in order to secure potential international support and aid. 8.5 SALES PROMOTION ELEMENT Promotional activities intended to entice consumers to make an immediate purchase of products or services are known as sales promotion. These events include promotional contests, free prizes, cash discounts, and free samples, among others. In order to boost revenue in the short term, sales promotion typically works in conjunction with other promotional activities such as advertisement, personal selling, publicity, and so on. Every business creates sales marketing activities tailored to buyers, traders, middlemen, or distributors, as well as salespeople. Sales Promotion Examples: i. Consumer benefits – free samples, cash bonuses, tournaments, and so on. ii. For middlemen: co-op ads, dealer discounts, dealer rewards or schemes, and so on. iii. Bonus, reward, or commission on purchases, appreciation prizes, free vacations, competitions, and so on. Benefits of Sales Promotion: The following are some of the benefits of sales promotion: I Attention Value – Since rewards are linked to sales, sales marketing practises draw people's attention. (ii) Helpful for New Product Launches – Sales promotions encourage consumers to branch out from their usual shopping habits to try new goods. As a result, sales marketing tools aid in the introduction of new goods. 161 CU IDOL SELF LEARNING MATERIAL (SLM)
(iii) Synergy in Total Promotional Efforts – Sales promotional activities complement other promotional resources such as ads, personal selling, and so on, in order to make the firm's overall promotional efforts successful. Limitations of Sales Promotion: While sales promotion practises aid in the effectiveness of sealer promotional tools, they do have some limitations. I Reflects Crisis – Frequent sales promotional practises may give consumers the impression that the company is unable to generate natural demand for its goods or that there aren't enough buyers. It could be interpreted as a signal that the company is liquidating its inventory. (ii) Tarnishes Product Image – Too many advertising activities may tarnishe the image of a product. Customers may believe that the product is of poor quality or that the company is attempting a distress sale. Sales Promotion Activities That Are Often Used: Most businesses nowadays use sales marketing practises to not only introduce or launch new products, but also to boost sales of existing products or gain a competitive advantage. The following are some of the most widely used sales marketing activities: I Rebates – Selling goods at a reduced price to clear out surplus inventory is referred to as a rebate. For example, most car manufacturers provide price reductions at the end of the year to clear inventory. (ii) Discounts – Selling goods at a lower price than the list price is known as a discount. Reebok, for example, can deliver discounts of up to 50% during its end-of-season sale. (iii) Refunds – Certain businesses may refund a portion of a customer's purchase price if they have evidence of purchase. Sweet chocolate, for example, promised a refund if consumers returned four empty milk chocolate wrappers. (iv) Commodity Combinations – This applies to selling a collection of two or more items for a single price. A consumer might, for example, spend Rs.1500 on a combination of a blood glucose metre and a blood pressure monitor, or Rs.1500 on a combination of a Led television and a DVD player. (v) Amount Gift – This applies to providing additional product quantities. It is the most widely used promotional bid for consumer goods. 162 CU IDOL SELF LEARNING MATERIAL (SLM)
For eg, 20% more rice; buy one, get one free; and get a third night free on a two-night vacation. (vi) Instant Draws and Allocated Gifts – Customers can be assigned gifts if they enter a contest or buy a particular product or number. For eg, ‘scratch a card' and instantly receive the prize stated on the card, or purchase a refrigerator and receive a free steriliser, or shop for Rs.10,000 and receive a 10% discount on the bill. (vii) Lucky Draw – Some businesses hold a lucky draw in which customers will win prizes. Buy Lux soap and you could meet Sharukh Khan, or buy Thumps up and you could win a trip to Singapore. (viii) Usable Advantage – Businesses have usable incentives such as shopping for Rs.50,000 and receiving a free holiday kit worth Rs.8,000 or purchasing clothing for Rs.10,000 and receiving a Rs.1,000 accessory voucher. (ix) Full Financing – Many retailers have 100 percent financing for durable products, allowing consumers to pay in convenient monthly instalments with no interest. (x) Sampling – Many advertisers provide free samples to consumers in order for them to evaluate the product's quality or establish a preference for it. This is a popular method for launching new goods. For example, before releasing a new chip flavour, a company can provide free samples to potential or target customers in order to obtain feedback or develop a taste for the new chip flavour. (xi) Competitions – Many businesses hold contests, such as a beauty pageant or a quiz, in which consumers can compete and win prizes. 8.6 WHAT IS PERSONAL SELLING? When a salesperson meets a potential buyer or buyers face to face with the goal of selling a product or service, this is known as personal selling. Many salespeople are drawn to the industry by the adrenaline rush of high-stakes personal selling; think of those whisky-swilling Mad Men or the ultra-motivated salesmen of Glengarry Glen Ross. There's a lot more to selling these days than going to meetings. Why? Simply put – the expense. Consider this: each face-to-face meeting necessitates far more time and effort – on both sides – than simply contacting a prospect via email or phone. Suddenly, you’ve got travel 163 CU IDOL SELF LEARNING MATERIAL (SLM)
expenses. The time spent preparing for, travelling to, and attending the meeting only adds to the expense. This is why, before deciding on personal selling, you should think about the value and type of product you want to sell, as well as the likelihood of closing the deal. Personal selling is the process by which company representatives make direct contact with potential customers in order to persuade them to buy their products. The goal of personal selling is to match the right product with the right customer. Keeping in view this kind of role of sales personnel, we would discuss the qualities of sales personnel that you must possess or look for while recruiting them. Though, it is believed that salespersons are born but training, of course, can help in making good salespersons. Irrespective of this fact 63 salesperson should have following qualities to perform at best in selling tourist transport products. These are: a) The ability to predict the needs and wishes of customers, b) It should look tidy and well-organized. c) Must be familiar with the organization's ins and outs. d) It is expected of you to be courteous. e) Creativity, vision, and the ability to generate new ideas are needed. f) Mathematical ability to calculate (figure sense) and correctly fill out order forms is needed. g) Be adaptable since each touch can necessitate adjusting the sales pitch, speech patterns, and even appearance. h) Customers should be greeted in a welcoming way. I Another essential quality is health, since good health produces energy, and energy is required to sell. j) A detailed understanding of the product is needed. k) Must be able to persuade his or her clients that his or her company is the best in the industry. l) It must be convincing. Few goods, regardless of type, sell themselves. They must be promoted by salespeople's persuasions. m) Should be able to deal professionally with unpleasant people and circumstances. n) He or she should be a self-starter, which means that he or she is capable of making decisions on his or her own, and o) With sincerity and friendliness, he or she can emphasise sales points. In The Tourist Transport Business, The Importance Of Personal Selling 164 CU IDOL SELF LEARNING MATERIAL (SLM)
It is true to say that an organisation sees and hears through the efforts of personal selling. A company's eyes and ears are its salespeople. As a result, it's critical to comprehend the significance and goals of personal selling efforts: 1) It implements marketing strategies: Whatever marketing strategy is used, it all boils down to strategic communication directed at customers or prospects, and the salespeople are the ones who communicate with the prospects. 2) It brings money into the company: It is the salesmanship of sales personnel that brings order, tangible results, and meets marketing objectives, i.e., it collects money for the company, whereas other components are “money-using” components. 3) It makes the company known: All good companies have salespeople who are known to their customers. They don't advertise very often. Tourist transportation companies do not advertise, but their personal selling efforts build goodwill among customers. 4) It keeps and acquires customers: Because salespeople are the overall managers of their territory, they are responsible for both maintaining and growing existing business. 5) It is a source of feedback: As you may know, a company's salespeople are known in the marketplace, and the company's representatives are also known in the marketplace. As a result, field salespeople are regarded as excellent sources of market information. 8.7 SUMMARY • Selling is an important activity for any business operation. In service oriented industry selling assumes greater importance due to the fact that here we sell abstract concept, dream or even passion. • Therefore, in selling of tourist transport we see predominant role of personal selling. • Personal selling involves selling transport services through an effective team of rules force. This sales force is required to be highly motivated by you as a manager of tourist transport operations. 8.8 KEYWORDS • Capacity management: A process that seeks to ensure that their organisations operate at optimum capacity whilst maintaining customer satisfaction levels. • city guide: a person who has a speciality of guiding in the city only • co-op tour: a tour which is sold through a number of wholesalers, cooperatives, or other outlets in order to increase sales and reduce the possibility of tour cancellations. 165 CU IDOL SELF LEARNING MATERIAL (SLM)
• Ecotourism: Defined by The International Ecotourism Society as ‘responsible travel to natural areas that conserves the environment and sustains the well-being of local people’. • Market segment: the concept of dividing a market in parts 8.9 LEARNING ACTIVITY 1. Prepare a ppt for the elements of Promotion Mix. ___________________________________________________________________________ ____________________________________________________________________ 8.10 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. What are the Significance of personal selling? 2. Define promotion mix? 3. How advertising works with leisure? 4. Define stagnation. 5. What are the limitations of sales promotion? Long Questions 166 1. How Advertisement works-explain? 2. What are the advantage of sales promotion? 3. Explain the elements of promotion mix? 4. What is personal selling? 5. How advertising works to tourism? B. Multiple choice Questions 1. ---------- should appear neat and organised a. Employer b. Worker c. Salesperson d. None of these CU IDOL SELF LEARNING MATERIAL (SLM)
2. --------- many marketers offers 100% financing for durable goods. a. Full finance b. Interest c. Dividend d. None of these 3. ---------- means offering products at price less than the last price. a. Finance b. Share c. Discount d. None of these 4. A category of population who do not take part in travel is known as a. Potential demand b. Suppressed demand c. Deferred demand d. No demand 5. Suppressed demand includes potential demand and -------------------------- demand a. Deferred demand b. Direct demand c. Suppressed demand d. None of these. 6. Which demand comprises of category of people who do not travel for samereason a. Suppressed demand b. No demand a. Effective demand b. Actual demand 7. A country is mainly benefited from tourism by the --------------------- 167 a. Tourist expenditure b. Tourist travel c. Accommodation CU IDOL SELF LEARNING MATERIAL (SLM)
d. None of these. 8. Which is the most important economic benefit of tourism a. Increase in employment b. Increase in production c. Foreign exchange d. None of these. 9. Tourism demand measurement is referred as ---------------- a. Tourism statistics b. Tourism marketing c. Tourism segmentation d. None of these. 10. Which statistics simply measures the number of people who arrive at a destination. a. Volume b. Value c. Expenditure d. None of these. 11. Which is not considered in value statistics a. Payments to international airlines b. Payments to domestic airlines c. Payments to Accommodation d. None of these. 12. Which statistics measures the characteristics of visitor and of the visit. a. Value statistics b. Voulme statistics c. Expenditure statistics d. Visitor Profile statistics 13. A visitor who stays in the country visited for at least one night is known as -------------- a. Visitor 168 CU IDOL SELF LEARNING MATERIAL (SLM)
b. Resident c. Tourist d. None of these. Answer 1.c 2.a 3.c 4.d 5.a 6.a 7.a 8.c 9.a 10.a 11.a 12.d 13.c 8.11 REFERENCES Reference books • Kotler, Philip : Marketing Management & Hospitality and Tourism Marketing. • Sinha, P.C : Tourism marketing. • Vearne, Morrisson Alison: Hospitality marketing • Kotler, Philip and Armstrong Philip, Principle of Marketing, 1999, Prentice-Hall India, 1999 Text books • Specific Country Guide Books of Lonely Planet Publication. • DK Eyewitness Travel Guide: Europe • A.K Bhatia – International TourismMgt. • International Geography for Travel and Tourism by John P.Wrades 169 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT 9: MARKETING DISTRIBUTION CHANNEL Structure 9.0 Learning objectives 9.1 Introduction to Distribution channel 9.2 Summary 9.3 Keywords 9.4 Learning activity 9.5 Unit End Questions 9.6 Reference 9.0 LEARNING OBJECTIVES After learning this unit, the student will be able to • Identify various distribution channels. • Recognise the working of travel agencies. 9.1 INTRODUCTION TO DISTRIBUTION CHANNEL A distribution channel is a path that goods and services move from a vendor to a customer, or payments for such items travel from a customer to a vendor. It's a \"linkage of various combinations of organisations in which a manufacturer of travel goods describes, offers, or confirms travel arrangements to the customer,\" to put it another way. A distribution channel is a network of companies or intermediaries that a product or service passes through before reaching the final customer or end user. Wholesalers, dealers, distributors, and even the Internet are examples of distribution networks. The downstream process includes distribution networks, which address the question, \"How do we bring our product to the consumer?\" The upstream method, also known as the supply chain, addresses the question, \"Who are our suppliers?\" Systems of Global Distribution The evolution of GDSs provided tourism businesses with ever-increasing services and searching capacity. A GDS is a company-run network that facilitates automated transactions 170 CU IDOL SELF LEARNING MATERIAL (SLM)
between travel service providers (mostly airlines, hotels, and car rental companies) and travel agencies. To provide travel-related services to end customers, travel agencies have historically relied on GDSs for services, goods, and rates. GDSs provided valuable links to travel services, pricing, and bookings, allowing tourism goods and services from all sectors to be consolidated. Users can normally book hotel rooms, rental cars, airline tickets, and other events and tours through modern GDSs. In certain markets, they also have links to train and bus reservations, but these are not necessarily incorporated into the main scheme. Websites for Online Sales For several airlines and their intermediaries, the tourism industry has seen a host of fascinating trends and innovations. With campaigns, deals, and channel marketing, it may seem that travel \"distribution\" is becoming more like \"e-commerce.\" The GDSs had a monopoly in the travel industry for many years. New innovations, on the other hand, are fundamentally altering the framework of the travel industry in terms of product and service delivery. Many airlines are distributing flights directly via their websites to escape the GDS and its high fees. In several markets, many airlines have closed their own ticket offices. Customers are constantly engaging with them through digital media. Passengers may use online booking engines to make their own reservations and pay for their trips using their credit or debit cards. Within 24 hours of purchasing a ticket, customers will receive an electronic ticket confirmation with a unique identifier code. They can also sign in and print their boarding passes via the internet. Search Engines for Travel Many search engines are rapidly providing attractive travel-related offers. They frequently have user-friendly websites that assist individual customers in finding the best deals. A flight quest, for example, may include one-way, return, or multiple destinations. In the tourism industry, there are two ways to reach customers: • Directly – in a travel agency or on the website of a travel agency. • Via an alliance with third-party distribution networks, indirectly. Not only will having the right distribution networks for tours and trips increase the tour company's visibility, but it will also increase its credibility. As a result, it's important for a tour company to be classified in the appropriate locations. 171 CU IDOL SELF LEARNING MATERIAL (SLM)
You will maximise your income as a tour company owner simply by selecting the appropriate distribution platforms for your tours and trips. That is how crucial they are. Website of a tour operator When was the last time you didn't begin planning a vacation on the internet? Isn't it been a long time? It is self-evident that the internet has altered traveller activity. It's never been easier to go from finding a travel inspiration to packing your bags for a new adventure. It's also very common among tourists. 1. Having said that, we can assure you that stunning tour images posted on your tour company's website can pique people's interest. Sharing videos from your trip on social media accounts will also result in sales! Don't forget to share travel images and videos on the tour company's website and social media accounts. 2. A Must-Have for a Successful Tour Company is Google My Business. One of the most significant indirect distribution networks for tours and trips is Google My Company. The SEO ranking of a tour company that is classified with Google would increase. Another advantage is that your tour company will be listed on Google Maps. All pertinent information, such as opening hours or a phone number, is included. 3. Work with hostels and tourist information centres to increase tour and trip sales. Visitors often ask an employee at the check-in desk for a tour recommendation after checking in at a hostel. As a result, a relationship with a local hostel will support tour and activity operators. Tourist information centres are often visited by travellers who are not staying in a hostel. As a result, you can get in touch with your nearest tourist information centre and see if you can collaborate with them. Flyers and brochures are usually sent by tour companies to hostels and tourist information centres. And interested travellers can contact your tour company to make a reservation. You now understand how important it is to maintain good ties with the front desk and establish perfect relationships! 172 CU IDOL SELF LEARNING MATERIAL (SLM)
4. Online review sites will make or break your tour company. Is there anybody out there who hasn't heard of TripAdvisor? No, I don't believe so. Your tour company will either make or break based on the feedback you get. All of the marketing strategies would fall short of reversing the negative impact of a few bad reviews. If your tour company, on the other hand, has hundreds of positive feedback, less marketing effort would be needed. The explanation for this is that only 14% of customers trust conventional ads, while 92% trust feedback on sites like TripAdvisor. Direct and indirect channels are the two types of channels. A direct channel allows customers to buy directly from the producer, while an indirect channel allows customers to buy from a wholesaler or retailer. For products sold in conventional brick-and-mortar shops, indirect channels are popular. In general, the price of a good would rise if there are more intermediaries in the distribution chain. A direct or short channel, on the other hand, can result in lower prices for consumers since they are purchasing directly from the manufacturer. Distribution Channels Types While a distribution channel may seem to be infinite at times, there are three key categories, each of which includes a distributor, wholesaler, retailer, and end customer. Since it comprises all four: manufacturer, wholesaler, retailer, and customer, the first channel is the longest. This long distribution channel is exemplified by the wine and adult beverage industry. A winery cannot sell directly to a manufacturer in this sector due to prohibition-era rules. It works on a three-tier structure, which means the winery must sell its product first to a wholesaler, who then sells it to a retailer. The commodity is then sold to the end user by the manufacturer. The second channel bypasses the wholesaler by selling directly to a manufacturer, who then sells the commodity to the end user. This means there is only one intermediary in the second channel. Dell, for example, is big enough to market its goods to respected stores like Best Buy directly. A direct-to-consumer model is the third and final channel, in which the manufacturer sells the product directly to the end consumer. A direct model is demonstrated by Amazon, which sells Kindles to its consumers on its own website. This is the shortest possible distribution channel, obviating the need for both a wholesaler and a retailer. 173 CU IDOL SELF LEARNING MATERIAL (SLM)
Selecting the Most Appropriate Distribution Channel Since not all distribution channels are appropriate for all goods, it is important for businesses to choose the best option. The channel should be consistent with the company's overall mission and strategic direction, as well as its sales objectives. The distribution method can provide added value to the user. Do customers want to talk with a sales representative? Would they want to touch and feel the product before buying it? Or do they want to buy it without any hassles online? Companies will use the answers to these questions to help them decide which platform to use. Second, the business should think about how fast it needs its product(s) to meet the customer. Certain items, such as meat or fruit, are better served by a direct distribution channel, while others can benefit from an indirect distribution channel. If a business prefers different distribution channels, such as selling goods online and through a store, the channels do not compete. Companies should plan ahead of time to ensure that one channel does not dominate the other. DIRECT TO END USERS SELL THROUGH A SELL THROUGH A VAR DEALER NETWORK (VALUE-ADDED RESELLER) You have a sales force You market a commodity You sell a product to a that works with Fortune to end-users in your business that resells it 100 businesses directly. region through a after bundling it with geographical network of services or other goods. You have a small dealers. Dealers can also Since it adds value to business merchandise line provide service for the your product, the as well. You offer this commodity. company is known as a line directly to end-users Your dealers are basically Value Added Reseller through your website and your clients, and you have (VAR). a solid training and A VAR can consult with 174 CU IDOL SELF LEARNING MATERIAL (SLM)
marketing campaigns, support programme in an end-user to determine rather than through your place for them, including the best products and sales staff. marketing campaigns and configurations before materials. putting together a system There are two markets that includes your and two distribution product. networks available to you. Here are three examples of distribution channels in marketing: To create a good distribution program, focus on the needs of your end-users. 9.2 SUMMARY The distribution channels refer to all aspects which link the businesses with the consumers. In the past, airlines used to hold sales offices / ticketing offices in city centers and airports. Their distribution network also consisted of tour operators and travel agents who were entrusted with the distribution of tourism products. 9.3 KEYWORDS • VAR- Value Added Reseller. • Assets: Something of value that will provide future benefit or utility, can be used to generate revenue. Usually owned, so simply described as 'things we own'. • Best Practice: Operational standards considered the most effective and efficient means of achieving desired outcomes. • Bureaucracy: An organisation typified by formal processes, standardisation, hierarchic procedures, and written communication • Business travel: Travel for a purpose and to a destination determined by a business, and where all costs are met by that business. 9.4 LEARNING ACTIVITY 1. Mention the Distribution channels you will adopt as a manager working in an airline ---------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- 175 CU IDOL SELF LEARNING MATERIAL (SLM)
9.5 UNIT END QUESTIONS 176 A. Descriptive Questions Short Questions 1. What is marketing? 2. What is the Role of Customer? 3. List out the Service Marketing Implication? 4. Who is end-customer? 5. What is meant by production gap? 6. Describe perceptual gaps. Long Questions 1. Explain the difference between Product and Service Marketing? 2. Explain the Market implications. 3. Differentiate between role of customer and consumer. 4. Describe products and its types. 5. Explain classification of consumer product? B. Multiple choice Questions: 1. The process of selling of a product through publicity is called a. Marketing b. Segmentation c. Advertisement d. Promotion 2. A tourism policy includes a. Rules b. Regulations c. Objectives and strategies d. All of these 3. A person who moves from one location to another is known as ---- a. Tourist CU IDOL SELF LEARNING MATERIAL (SLM)
b. Traveller c. Inbound tourist d. Out bound tourist 4. The measurement of attributes through the use of anestians is known as---------- a. Emotion b. Perception c. Psychometrics d. None of these. 5. A person who is travelling a place for pleasure is known as 177 a. Tourist b. Traveller c. Inbound tourist d. None of these 6. Net travel propensity measures-------- a. Total number of trips b. Total number of transist c. Total number of persons who take at least one trip d. None of these. 7. Which travel propensity measures total number of trips a. Gross travel propensity b. Travel measurement c. Net travel propensity d. None of these 8. The value statistics measures a. Tourist expenditure b. Twists days c. Accommodation d. None of these. CU IDOL SELF LEARNING MATERIAL (SLM)
9. Which statistics measures tourism trips a. Value statistics b. Volume statistics c. Expenditure statistics d. None of these 10. Which demand refer to the demand for goods that are needed for final consumption a. Direct demand b. Derived Demand c. Indirect Demand d. None of these. 11. Which demand is not derived or induced a. Indirect demand b. Perishable demand c. Direct demand d. Autonomous demand Answers 1.d 2.d 3.b 4.c 5.a 6.c 7.a 8.a 9.b 10.a 11.d 9.6 REFERENCES Reference books • Kotler, Philip : Marketing Management & Hospitality and Tourism Marketing. • Sinha, P.C : Tourism marketing. • Vearne, Morrisson Alison: Hospitality marketing • Kotler, Philip and Armstrong Philip, Principle of Marketing, 1999, Prentice-Hall India, 1999 Text books • Specific Country Guide Books of Lonely Planet Publication. • DK Eyewitness Travel Guide: Europe • A.K Bhatia – International TourismMgt. • International Geography for Travel and Tourism by John P.Wrades 178 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT 10: CHALLENGES AND STRATEGIES Structure 10.0 Learning Objectives 10.1 Introduction 10.2 Challenges in Tourism Marketing 10.3 Strategies in Tourism Marketing 10.4 Summary 10.5 Keywords 10.6 Learning activity 10.7 Unit end Questions 10.8 References 10.0 LEARNING OBJECTIVES 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. 10.1 INTRODUCTION 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. 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. 179 CU IDOL SELF LEARNING MATERIAL (SLM)
The top-rated Maui resort Hotel Wailea, for example, provides a respite from the beach's throngs. 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. 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. Some argue that reducing the list leads to a much-desired sense of simplicity, which could lead to the omission of some important elements. 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. There are three factors that decide whether or not an element must be included in the marketing mix of a Process company: There is proof 1) 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. 2) 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. 3) 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. 180 CU IDOL SELF LEARNING MATERIAL (SLM)
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 re-alve 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. 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. 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. 181 CU IDOL SELF LEARNING MATERIAL (SLM)
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. 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. 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. 182 CU IDOL SELF LEARNING MATERIAL (SLM)
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. And, 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. 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. 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. 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 183 CU IDOL SELF LEARNING MATERIAL (SLM)
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. 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. 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. Vacation Costs & Inflation 184 CU IDOL SELF LEARNING MATERIAL (SLM)
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. 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. 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 185 CU IDOL SELF LEARNING MATERIAL (SLM)
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. 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. 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. Only through high standards of contemporary tourism education and training can a high- quality workforce be created. Tourism education and training entails the transmission of skills, ideas, and strategies that are unique to the field of tourism but rely on core disciplines and themes from fields such as geography, economics, and marketing. 186 CU IDOL SELF LEARNING MATERIAL (SLM)
10.2 THE CHALLENGES OF TOURISM MARKETING 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. 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. They are responsible for maintaining a positive image, finding solutions to problems, providing special assistance when needed, and maintaining harmonious relationships, among other things. These individuals are responsible for the entire image of the product in hct. 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 187 CU IDOL SELF LEARNING MATERIAL (SLM)
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. 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. 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. Now we'll look at the challenges in more detail, as well as the strategies that can be used to overcome them. 188 CU IDOL SELF LEARNING MATERIAL (SLM)
• High-end street travel agents are on the decline. • The internet. Management of records tracking • The shared economy's allure. Peer-to-peer travel is becoming increasingly popular. 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. 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. I. 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. 189 CU IDOL SELF LEARNING MATERIAL (SLM)
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. Employees in this category should be given special attention because first impressions of a location and its people are formed in the minds of potential visitors at that time, and they are difficult to change later. II. 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. 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. 190 CU IDOL SELF LEARNING MATERIAL (SLM)
• 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. • Yes, the internet has had a significant impact. We can now search for the best deal on sites like booking.com or lastminute.com, as well as read TripAdvisor reviews to help us make our decisions. • 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. 191 CU IDOL SELF LEARNING MATERIAL (SLM)
• 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. • 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. 192 CU IDOL SELF LEARNING MATERIAL (SLM)
• Encourage customers to write online reviews and reviews about their in-store reservation experience. 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. They may, however, be. 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. 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. • You can do 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. 193 CU IDOL SELF LEARNING MATERIAL (SLM)
• 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. 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. 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. 1- 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. 2- 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, 194 CU IDOL SELF LEARNING MATERIAL (SLM)
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. If a quality problem arises, it is addressed during the quality check, and customer satisfaction is ensured. The customer, on the other hand, is right in front during service production. In this situation, ensuring customer satisfaction is a major undertaking. 3- 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. 4- 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. 5- 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. 6- 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. 7- While testing new services is always difficult, communicating about these services at the same time is also difficult. 8- The service industry has a difficult time establishing prices. 9- Another major issue faced by the service industry is standardization versus personalization. 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. 1- 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. 2- 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 195 CU IDOL SELF LEARNING MATERIAL (SLM)
fan of the brand and could easily switch to a competitor based on price, discounts, or freebies. 3- 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. 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. 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. 196 CU IDOL SELF LEARNING MATERIAL (SLM)
• Diversifying the product line to reduce market risk. Niche Marketing Strategy When an organisation recognises that what it has to offer only serves a small number of market segments, or that there is a small market that can be easily served, this marketing strategy is used. The assumption is based on the fact that competition will be minimal. Concentrating on a single market, understanding its needs, and developing products and promotions that are perfectly suited to that market can be a successful strategy, especially for smaller businesses with limited resources but a thorough understanding of their target markets. These businesses will work in markets that are too small to draw market leaders. For those who want to develop closer and more direct relationships with their clients, a focused approach is ideal. 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. ” 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. 197 CU IDOL SELF LEARNING MATERIAL (SLM)
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. 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. 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. 198 CU IDOL SELF LEARNING MATERIAL (SLM)
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. Tour operators need to see the marketing leader's brochures as often as possible to get a sense of what's on offer. Also, if deliberate efforts can be made to conduct a fair analysis every few months, jotting down findings to decide how the details can be utilised, examining their costs, visitors, facilities, and other factors, it will be practical. 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. 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. 199 CU IDOL SELF LEARNING MATERIAL (SLM)
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. 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. 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. 200 CU IDOL SELF LEARNING MATERIAL (SLM)
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