Marketing in Travel and Tourism
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10982 Downloads I Published: 16 May ,2017
Being the most largest and diverse industry in the world, the Tourism Industry is a modern service industry which connects nations and various people in the world. It is seen as a source of income, employment and growth (Market research for the travel and tourism industry, 2013). As such, tourism development has gained the attention of public policy makers and decision makers of private sector. For developing tourism industry that has enough facilities and possess potential of tourism, marketing techniques need to be considered. This is because of the close link between tourism development and marketing. Marketing in travel and tourism will need to improved image and increased sales and profitability (Burns and Bush, 2003). The following report consists of two assignments. The first assignment is based on marketing Dubai as a tourist destination. In the second assignment, marketing strategy has been implemented for a travel and tourism company of the UK.
The core concepts of marketing explained in context of travel and tourism sector are as follows.
Need – It can be stated as a state of deprivation for achievement of satisfaction. In case of travel and tourism sector it can be need on part of tourists to get the best possible service offering (Jayachadran, 2004).
Want – It involves for a desire of specific need satisfier. Here, the tourists may expect good service offering in form of good transport facilities, tourist friendly legal norms among others.
Demand – This may involve for a want towards a specific product that is backed by an ability as well as willingness of tourist to buy (Shrivastava, 2011).
Products – It involves for anything which has a tendency to satisfy the needs and wants of a consumer (Walker, 2009). In present scenario, this can be hotel rooms, guesthouses, attractions, fine dining facility among others.
Exchange – This stage involves for the act of obtaining a desire product by offering something in return. This can be in form of monetary exchange so as to get an access to some product or service offering (McKercher, 2001).
Transaction - This involves for the event that has happened soon after the end of exchange. In present scenario, a tourist may get access to facilities in form of fine dining or hotel room in exchange for money (Lacobucci, 2014).
Market – It consists of all the potential consumers that share a particular need, have a willingness to buy as well exchange a service so as to satisfy a particular need.
The marketing environment of Dubai can be divided into the macro and the micro environment. The micro marketing environment of Dubai consists of the various tourism organizations, suppliers of travel and tourism services, customers and the competitors. Tourists are basically paying visit to Dubai on account of varied forms of tourism offered by it. These are in form of tourism, business tourism, sports, eco-tourism, health care tourism, spa and education tourism (Industry segments, 2012). They have a basic notion about Dubai that it is a unique destination as well as a tourist paradise. It is preferred by wealthy as well middle class consumers as it offers both expensive seven star hotels along with the most affordable hotels (Mazanec, 2000). Dubai tourism has also done a lot to satisfy tourist with the services hence it makes it one of the most attractive destinations to be visited (Kotler, Bowen and Makens, 2006).
The macro environment of Dubai consists of the culture, tourism systems and destinations. Events and festivals form an inseparable part of Dubai’s culture. It has developed itself as a major destination for local and international events. It has also strived to earn its reputation as the sporting capital of the Middle East. It hosts a wide range of sporting activities, conferences and exhibitions (Harrison and et. al., 2005). It has a lively night life and has build up hotel bars which contain informal Irish and British pubs as well as lounges of western style. The changing tastes of customers have impacted Dubai in the way that it has arrangements where latest sounds can be enjoyed in a number of hotel nightclubs. Heritage and museums of Dubai give an insight into the history. These historic findings have been carefully preserved and the artifacts are housed in the museum. All these have impacted the catering, entertainment, recreation, transportation, accommodation, resort development, and food and beverage (Background, 2012).
There are a number of factors that affect consumer motivation and demand for Dubai as a tourist destination. They are the following:
Factors that affect consumer motivation and demand
Culture – The tourists that pay a visit to Dubai are from different cultural origins. There is also a presence of varied subcultures within the given set of cultures. On the basis of cultures, the motivational factors for Indian tourists coming to Dubai may be in form of mosques, temples and other religious places (Moschis, Curasi and Bellenger, 2003). In the similar manner, Japanese tourists may prefer varied food offering hence may be motivated to visit Dubai on the basis of this reason.
Social – These are inclusive of reference groups, family as well as roles and status. Here, the motivation of tourists to pay a visit to varied tourists spots of Dubai may be on the basis of referral groups that have suggested the names of places (Kotler, Bowen and Makens, 2006). The family choices and desires may motivate them further to pay a visit to varied tourist spots.
Personal - The personal factors that affect consumer motivation and demand for Dubai as a tourist destination are in form of age, life cycle stage among others. For example, Dubai as a tourist destination is preferred by both middle class as well as low income tourists on account of the presence of expensive ranged hotels as well as middle range guest houses (Walker, 2009). It is also preferred by those tourists who have shopping as a major part of their lifestyle. In this regard, the shopping malls act as a major source of motivation.
Psychological – These factors are inclusive of perception, learning, belief and attitude that is hotel by tourists towards Dubai as a tourist destination. Tourists are motivated to visit Dubai because of its pleasant weather (Heyer, 2008). The factors that decrease the demand for a tourist destination such as possible wars or conflicts and diseases are not present in Dubai. It excellently cares for the emotions of the consumers with its location, hotels, events and festivals, lively nightlife and heritage and museums. Dubai caters to the wants and needs of tourists of varying personalities such as adventurous, loner, gregarious etc. Its destinations are adapted to fulfill the emotional needs of each of the personality types (Morrison, 2002). It has also expanded itself to adapt to the needs of people having different lifestyles.
It can be assessed that motivation to visit Dubai for tourists is on account of its culture richness. They are further visited to pay a visit to Dubai when motivated by referral groups who have played a visit to the place in past. Moreover, as the destination under study is favored by middle class people hence the need on part of Dubai tourism is to develop facilities that are favorable for the visitors. These can be in form of developing adventurous tourist’s places, focusing on enhancement of temples and other religious places amongst others (Kotler, Bowen and Makens, 2006). In the same way, demand of tourist should be meant by increasing the number of middle class hotels.
Principles Of Market Segmentation can be used in strategic marketing planning for promoting Dubai as a tourist destination. Demographic segmentation can be used for marketing the tourism of Dubai. Customers can be segmented according to the different countries they belong to and likewise the marketing activities can be oriented (Skift Trends: 6 Characteristics of Independent Chinese Travelers, 2013). The marketing for the Indian consumers in this respect can be focused on developing vegetarian food joints in Dubai. Chinese are large in numbers and are generous in consumption. Most of them belong to the group of 25 to 45 years of age. Hence, facebook and other social networking sites can be used for marketing Dubai as a tourist destination to attract this group. Also the Chinese business travelers care more about the quality and prices. Hence, the marketing activities can be focused on satisfying these needs to attract the Chinese business travelers (Klemm, 2002).
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Psychographic segmentation will be based on the personality types, values, attitudes, cultural and other psychological variables (Mazanec, Woodside and Crouch, 2001). As such, strategic marketing activities for promoting Dubai can be focused o the reasons that consumers have for making particular decision about the services. Markets can be segmented based on the lifestyles of the consumers. Dubai can be marketed as the tourist destination that suits the needs of people belonging to lavish as well as simple lifestyles. As such the marketing activities will be focused on influencing the behavior of the tourists. Demographic segmentation can be done by making separate destinations for people of different age groups. Some single people do not want to go to destinations that are visited by families together (Kotler, Bowen and Makens, 2006). Hence, Dubai can be marketed as a tourist place that caters to these needs of the people belonging to different groups.
Market research and market information carry significant relevance or the managers in travel and tourism sector of Dubai. The managers of Dubai Department of Tourism and Commerce Marketing and other organizations such as the hotels require market information. With market research, they are able to gather a range of information (Kashyap and Bojanic, 2000). This includes the total number of visitors in Dubai. It also gives them information on the spending habits of tourists. With the help of market research, the managers are able to have knowledge about the perception of the tourists about Dubai (Morrison, 2002). They are also able to know the level of satisfaction of the tourists in Dubai. As such, they plan to develop Dubai in a way that provides satisfaction to the tourist by catering to their various needs. Market research helps the managers to assess the contribution of local economy to the tourism sector. Likewise they are able to detect the areas where developments need to be made in the travel and tourism sector. As such they are able to initiate and manage development programs that help in sustainable tourism development. Market research will help the managers to understand the characteristics, attitudes and opinions of the visitors. It will assist in identifying new markets (Reid and Bojanic, 2006). With this, the managers will be able to monitor the performance of the tourism sector in Dubai. This will help in formulating marketing strategies for this sector in Dubai.
Marketing for promoting Dubai as a tourist destination has many positive as well as negative impacts on the society. Since tourism is one of the service industries, it directly affects the economic growth of Dubai. Marketing activities help in promoting Dubai as a tourist destination. As such, there will be an increase in the influx of tourists. This will provide revenues which can be used for the development of Dubai (Walker, 2009). As such the society will be benefited by better infrastructure. Marketing will help in making the culture of the city strong. Hence the society will develop a better image of the country and will feel proud of being a part of it. Also the marketing will lead to the society being more knowledgeable about their city. But the promotional videos and TV commercials which are used for marketing the city can contain content that may be against the culture and the values of the people. Also, promotion of Dubai by letting down the other destinations may lead to the development of wrong image of the other destinations in the minds of the people (Charles and et. al., 2009).
There are various issues that exist while designing and developing product, price and place elements of the marketing mix for Hilton hotel. There may be issues related to providing those services to the customers that not only provide them satisfaction but also delivers a competitive advantage to the Hilton hotel. The issues related to the product element will relate to providing restaurants, guest rooms, fitness centre, pool and all the other services suiting the tastes of the customers. There may be issues where the customers may wants the hotel to increase the range of their services to providing transportation facilities. This may sometimes not be feasible for the hotel. Issues may arise related to providing most utility for consumers at a price that is profitable for the hotel (Rooms and suites, 2013). The hotel may not be able to provide the service such as valet parking and concierge. If the hotel does not have a room that satisfies the needs of the businessman, issues can develop related to this.
The issues related to the price element of the marketing mix of Hilton hotel will consist of the perceived price that consumers associates with the services of the hotel for which he pays. If the hotel is unable to create a tradeoff between the price and the quality of service provided by it, there may be an issue. Also there may be issues if the consumer is not able to book or purchase a service much before its consumption. Issues may arise if attention and careful consideration are not paid by the managers of the Hilton hotel to the rack rates and agreeing to discounts for key account (Medlik and Ingram, 2000). The place element of the hotel is its location and presence on web. There are around 540 hotels around the world. But the web presence of the hotel is not well developed. As more and more customers now use internet for getting information, there may be issues if sufficient information is not present on the website of the Hotel. There may be issues related to the place of the Hilton hotel if the tourist attractions are not present in the vicinity and no facilities are provided by the hotel in this regard (Bowie and Buttle, 2004).
The service sector mix elements are crucial for Hilton hotel. The product element of the hotel consists of the hotel rooms, restaurants and the services provided by it. Being in hospitality industry, Hilton hotel needs to design its product element in a way that satisfies the needs and wants if the business travelers. The hotel rooms need to be different in the quality and services they offer. This is important as only then Hilton hotel will be able to target the consumers who have the need for a specific type of room (A legacy of innovation, 2013). This is because the needs of a businessman will be different from those of leisure travelers. The place element is crucial for the success of Hilton hotel. It is important for Hilton hotel to consider the location. This is because the visitors give importance to the location of the hotel. Hence, choosing an accessible and convenient location will help the hotel in getting more customers. It is the location of Hilton hotel that will affect its transportation possibilities and accessibility, which are the two most important factors considered by the visitors before choosing the hotel (Go and Govers, 2000). In the similar manner, there is also a presence of people element which is all about which deals with the employees who are a part of Hilton hotel. In this respect, Hilton hotel is required to focus on the all round development of employees by providing them with thorough training and development sessions. The next element happens to be physical evidence which must be designed in such a manner so as to provide for maximum consumer convenience. This can be by designing the website so as to make booking of hotel rooms easier for clients (Morrison, 2002). A complaint section can also be introduced in order to provide for a better service quality. Process element is required to be designed in such a manner so that consumers do not have to face any issue while they are involved in the purchasing of any product or service offering. This can be by designing an automatic billing system, giving clear details on website among others.
The price element is important to be considered by Hilton hotel as demand and profitability are influenced by the pricing decisions. The hotel can lose its price sensitive customers if it does not pay attention to the pricing (Israeli, 2002). Appropriate pricing strategies can allow the hotel to gain extra market share. Decisions related to the discounts are crucial for Hilton hotel. The pricing strategies should be such that Hilton hotel distinguishes itself from its competitors. This element is important for Hilton hotel as with this element the hotel will be able to cover the cost of delivering services (Dolnicar and Leisch, 2001). Price helps in conveying a message to the customers. High price charged by Hilton hotel will convey high quality of its services. But extremely high prices can have a negative effect and can even drive the hotel out of the market. If the hotel succeeds in placing the price closer to value relationship, it will be able to satisfy its customers. This may lead to return purchase. The promotion element is important for Hilton hotel. This is because if the consumers are not aware of the products and services of the hotel, sales cannot be generated as they will not be able to access to the product of the hotel. This element helps the hotel to make the consumers aware of its services so that they use it. Hilton hotel promotes itself by advertising its products and services and also uses brand identification. This is important for its success (Frochot and Morrison, 2000). The consumers relate the Hilton hotel chain with luxury and good quality. This helps the hotel in planning its marketing strategy.
Hilton hotel has a diversified product portfolio that forms the total tourism product. There are various rooms and suites according to the needs of the customers (Rooms and suites, 2013). Two categories of guest rooms cater to the wants of the customers. The Hilton guest room and the Deluxe room provide comfortable arrangements to the customers. The suites give the visitors home like feeling with separate living rooms and dining area. The rooms are quite bright, airy, have a presence of high speed internet as well television. The rooms are very large and contemporary followed by a presence of large windows as well as luxurious beds. Executive rooms are also offered by the hotel (Morrison, 2002). They have been specifically designed so as to make the stay of consumers a comfortable one whether it is for business or pleasure related activities. The room is composed of modern designing, elegant décor, more lights as well as profound dining facilities. It also provides the facilities of bread and breakfast (Developments and challenges in the hospitality and tourism sector, 2010). It also provides dining facilities. The hotel also helps the visitors in planning an event.
It can be concluded that marketing in travel and tourism sector is important for its development. Marketing has a crucial role to play in promoting Dubai as a tourist destination. The core concepts of marketing and the principles of marketing can be applied for this purpose. Market research and market information serve to be an important tool for the managers in travel and tourism sector. The elements of marketing mix are considered by Hilton hotel while designing its marketing strategy. These elements are crucial for the success of the Hilton hotel.
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