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Service Marketing in Hospitality and

Tourism Industry

Presented By – Ankit Agarwal


PRN No - 18030401802

1
What is the meaning of HOSPITALITY?
• Hospitality is the act of kindness in welcoming and looking after
the basic needs of guests or strangers, mainly in relation to food,
drink and accommodation.
• A contemporary explanation of Hospitality refers to the
relationship process between a guest and a host.
• Hospitality marketing is unique because it deals with the tangible
product, like a bed in the hotel or food in the restaurant, but it also
deals with the intangible aspects of the hospitality and tourism
industry.
• It is about the experience in a trip and social status it brings
eating in a fine-dining restaurant.
The tourism marketing mix
product

price place
variable

Intangibl Insepara
e ble
Touris
promoti m Physical
on service evidence

people process
Characteristics of Services

Intangibility Can’t be seen, tasted, felt, heard,


or smelled before purchase.

Inseparability Can’t be separated from service


providers.

Variability Quality depends on who provides


them and when, where and how.

Perishability Can’t be stored for later sale or use.

5
Intangibility
• High risk associated with services. It is difficult to evaluate
service before the experience. Furthermore, lack of
tangibility after the experience

• Tangibilizing the intangible


– Create strong organization image
– Engage in post-purchase communication
– Stimulate “Word of Mouth” & Publicity
• Online forums
• Blogs
• Social Media

6
Inseparability
• The customer becomes part of Service encounter = Moment
of truth.
• Managing employees
– Communication training
– Empowerment
• Managing customers
– What do you expect customers to do?
– Interaction with other customers

7
Variability
Lack of consistency
• Managing consistency
• Standardized procedure: industrialize service and cutting
interaction
• Customized: taking care of individual
• Educate customers
• Train contact and non-contact employees
• Manage suppliers’ quality

8
Perishability
Lack of ability to inventory
Capacity and demand management
• Managing demand
Understanding demand patterns
Price, Shift demand
Reservation, Overbooking
Create promotional events
• Managing capacity
Cross-train employees
Schedule downtime during periods of low capacity

9
Management Strategies for
Service Hospitality Business
• Tangibilizing the product
• Managing the physical surroundings
• Managing employees
• Managing perceived risk
• Managing capacity and demand
• Managing consistency

10
WHAT IS
MARKETING
MIX…..?
MARKETING MIX
General phrase used to describe the different kinds of
choices organizations have to make In the whole process
of bringing a product or services to market.”
The 7 Ps in a Marketing Mix
Traditional 4 Ps Additional 4 Ps
(as prevalent in manufacturing (common in service economy to
economy) account for the unique service
characteristics)
1. Product
2. Place 5. People
3. Promotion 6. Process
4. Price 7. Physical Evidence

PHYSICAL
PRODUCT PRICE PLACE PROMOTION PEOPLE PROCESS
EVIDENCE

RAINBOW OF SERVICE MARKETING MIX


1. Product
In the service industry like hospitality and tourism, what we offer in
terms of product is largely intangible. In fact, in the hospitality
industry, our products are mainly in the form of services, which
make the product of the industry quite unique as compares to other
industries. This is the experience and service that you have paid for,
for example

1)Taking a vacation trip to Europe. Once the trip is over, you are
unable to take the product away except the pleasant experience that
lingers on.

2) This is the same when you go to a fancy restaurant you are not
only buying the meal (Product) but also experience, the ambience,
decor and the service that are provided by the restaurant.
2. Price
• Amount customers’ pay for the product or service provided.
• A quality tourism experience at a fair price is what the customer
is looking for in most cases.
• Pricing should be based upon clear-cut goals and objectives:
– Survival
– Profit maximization
– Market share
– Competition or positioning
PRICE MIX

Premium Value For Economic Low- APEX


Pricing Money Value Pricing Fares
Pricing Pricing
3. Place
• The place where customers purchase the tourism product can
vary greatly.
• Travel agents, tour operators and tour wholesalers are a few
examples of the distribution points for tourism products.
• Direct distribution: own website or direct purchase in place
• Indirect distribution: third party operators:
– agencies/affiliates
– online websites: travelocity.com, edreams.com, etc.
– auctions
Place MIX

Online 24- Tour Affiliated


hour Operator/ with
reservation Travel Agent companies
Systems
4. Promotion
• A range of activities can be used to convince
customers to buy the product, including
– information kits
– web sites
– Advertising
– personal selling
– sales promotion
– travel shows
– public relations.
• Utilize tourist information centers, such as welcome
centers. Participation with your state, regional and
local tourism offices and associations.
4. Promotion
Promotion MIX
Most important to keep in mind:
• What is the best type of
communication channel to use that Advertising
will reach the target market ?
• What is the communication
objective ? Publicity
• What Is the most cost effective type
of communication channel ?
Sales promotion

Word of mouth
5. People
• People in the travel and tourism industry
– travel agents
– tourist guides
– hotel and restaurant staff
– transport personnel
• Play an important role in brand building and customer
satisfaction.
• It’s the no.1 area where a tourism business can go well or fairly
miserable.
• Very important all service staff members carry out excellent
service at all times
• Due to strengths of word-of-mouth online promotion:
“Service excellence is a paramount”
5. People

People MIX

Problem caring Responsi Goodwill


Solving Competence Reliability Initiative
Attitude veness
Ability
6. Process
• Detailed and well documented procedures for addressing every
situation and service context supported by infrastructure and
IT systems = consistent and good quality service.
– Administration
– Training
– Planning and strategizing
– Recruitment
– Purchasing
– Distribution
– Service delivery
Process MIX

Reservation Personal Meal Deliver


Detailed Facilities Entertai
belongings Service nment Quality
Information
Service
7. Physical Evidence
• Good customer experience is extremely important for generating
repeat business and also business from new customer through
positive word-of-mouth.
• “Tangibalizing the product is a good way of giving positive and
attractive hints or clues to potential customers.
“First service, then installations and facilities”
In the place:
On the go:
 Service professionalism .
 Booking offices or ticket counters.
 Display configuration.
 Good Inner-exteriors.
 Paperwork.
 Cleanliness.
 Uniforms.
 Brand Logo.
 Ambience.
 Comfortable .
 Tickets or reservations.
 Labels and descriptions.
Thanks !!!