Download Service Encounters in Tourism

Marketing of Travel
& Tourism Services
Presented By:
Monika (32)
ShUdodhani (71)
SHIKHAR (81)
Deepika (95)
AGENDA
0 What is Tourism ??
0 Drivers of Tourism
0 Features for Tourism Marketing
0 Service Blueprint – Flowcharting
0 Marketing Mix
0 Service Encounter
0 Customer Satisfaction
0 Service Quality
0 Models of Service Quality
0 Marketing Strategies
0 Key Critical Factors
0 Comparative Study
Tourism – What is it ???
Traveling for
Pleasure to
uncontaminated/
undisturbed
Natural Areas
Predominantly
Represents a
Visit with
a Motto
With the object of
Studying,
Admiring, &
Enjoying the Scenery
For Aspects Pertaining to :
• Wild Flora & Fauna
• Cultural & Historical Places
• Sanctuaries & National Parks
• Hill Resorts & Beaches
Major Driving Factors towards Tourism
 Burgeoning Indian Middle Class
 Growth in High Spending Foreign Tourists
 Coordinated Government Campaigns to Promote
‘Incredible India’
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ADVENTURE
Tourism
Click to
Cruise
TOURISM subtitle
edit PRODUCTS
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Medical
Tourism
TourIsM
style
Eco
mice
Tourism
Tourism
Features for Tourism Marketing
o Complex Service Package: Providing Customers a bundle of Basic &
Complementary Services
o Creating a Desired Image for Destinations: Tangible & Intangible
Benefits
o Continuous Evolving Marketing Mix: Tourists Expectations & Lifestyles
Change; Variety Seeking
o Emergence of New Segment: Free Independent Travelers
o Building an Experience Style: Contemporary, Traditional or Caribbean
o Designing a Service Blueprint: Adhering to Standard Service Processes
is difficult; Operational Costs may turn high
o Focus on Planning Differentiation: Heightened Competition inspires
Innovation in Tourism Marketing Strategies
o Shift towards Niche Segmentation & Concept Selling
Tourism Service Process Blueprint
10 P’s of Tourism Marketing
PRODUCT
PARTNERSHIP
PROGRAMMING
PRICE
PLACE
PROMOTION
Designing a Service
Combination that provides
Real Value to Targeted
Customers, Motivates
Purchase & Fulfills Genuine
Customer Needs
PACKAGING
POSITINING
PEOPLE
PLANNING
Service Encounters in Tourism
● Management of Service Encounter in Tourism involves a large amount of
control to be exercised to ensure Customer Satisfaction & Loyalty with
the Entire Service Process being specifically designed in terms of
Content & Sequence.
● Multiple steps to be carried out have to be truly customized & interactive.
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Customer
Contacts
Service
Provider
Service
Provider
Makes
Arrangements
Advertising
Reservation &
Service
Experienced at
Destination
Return &
After-Sales
Service
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-Creation of
Destination
Awareness
-Service Packages
Booking
-Transit Mode
- Hotel/Resort
- Place Visit
Reception
Add-Facilities
- Accommodation
-Information on
-Food
New Products
-Animation & Sports -Special Offers
-Shopping & other Services
Service Encounter Process
Phases of Service Encounter in Tourism
• Pre-Purchase Phase: Information Processing - Service Process takes
place wherein customers either through online sources like websites or
by physically visiting tours & travel operators offices obtain information.
This stage serves as the Litmus Test for the service provider as failure
cannot be covered.
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• Service Encounter Phase: People & Mental Stimulus Processing
occurs when customers enter service factory of moving in transit to
reaching the destination, consuming the service package services and
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Service Delivery Quality assumes great importance with how the service
personnel conduct themselves, the service-scape, the attire
communication & the supporting facilities.
• Post-Purchase Phase: Feedback from customers is necessary to
improve with focus on anticipating “what customers may like”.
Themes in Tourism Service Encounter
Recovery
- Immediately addressing the grievances of customers by
arranging special services
- Listening & assuring of Customers of better service in
future
Adaptability
- Service Design should be flexible enough for Provision of
Tours Packages not in Standard Products /making
arrangements with other service providers for specific
Customer Needs
Spontaneity
- Required from both Service Provider Firm while answering
Customer Queries & from Front-line Personnel deployed at
check-in points for creating a valuable experience for
Customers
Coping
- Fringe Benefits like Free Shopping Coupons, Special Passes
for Cultural Events should be provided if customer is
important
Customer Satisfaction & Service Marketing
For Customer Satisfaction & Interest
• Idea Now in use is Creating SPECIAL INTEREST TOURISM
through Product, Price, Place & Distribution Variants being
adjusted with Market Determinants.
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• Measurement of Customer Expectations is done continuously
to gauge the extent to which Tourism Business Environment
needs to be made creative & innovative.
• Tour Offers
are designed
with
an AESTHETIC
APPEAL
wherein
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the serenity, sightseeing, cultural performances, hotel
bookings are distinguishingly positioned to capture the
fascinations of people to have an experience which energizes
them.
• HOLIDAYING – around this term the services revolve to attract
consumers.
Aspects for Assessing Customer Satisfaction
1. Customer Perception towards Service Delivered:
Customers are satisfied when their judgment of the service they
have received (perception) equals or exceeds their expectations as
in tourism creating satisfaction means molding consumer emotions
& feelings in favor.
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2. Zone of Tolerance Theory: The Leisure & Tourism Marketers
require to know in advance the zone of tolerance of their customers
so that accordingly the service could be designed.
It meansClick
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Competition
thesubtitle
tourism service
provider
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needs to operate within the width of the zone of tolerance, for
Satisfying the desired service level needs to be met & for Delighting
the customer the service level standard should be set much higher;
creating a positive surprise for the customer.
3. Arousal Levels: One of the main satisfaction levels within the
tourism product is arousal. The initial destination offered in the tour
package designed forms the basis for the Correct Arousal Level.
1. Customer Satisfaction occurs when Perceptions Meet or Exceed
Expectations
Expectations
Informed By
= OR <
Perceptions
Informed By the Total Experience
• Past Experiences
(Activities- biking, canoeing,
Destinations visited)
Aspects that can be Managed by the Organization
- Offerings / ‘Bundle of Attributes’
-Service Delivery - Appropriate Arousal Level
- Cost
• Word of Mouth
Communication
(Positive/Negative, Family
Beliefs, Friends Opinions)
Aspects that can be Influenced by the Organization
-Customer’s Needs met by the organization
– Importance of the Travel Experience to the
Customer – The Amount of Risk the Customer
Perceives is involved
• Customer’s Own Needs
& Wants
• Risk Perceived
(Safety & Security)
• Price
Aspects that cannot be Influenced
-Pre-experience Events (i.e. transport)
- Customer’s Mood
- Companions (e.g. Argumentative) – PostExperience Events (i.e. meal in a restaurant on the
way home
2. Zone of Tolerance Theory
Pre-Purchase
During Purchase
Post-Purchase
Customer
Expectations
Customer
Perceptions
Customer
Satisfaction
Levels
• Tourists Expect the Service Level to be
above Bare Minimum Level of Adequate
Service & be at least near to the
Desirable Level.
• If Tourists perceive an activity has a high
risk, e.g. white-water rafting their zone of
tolerance will be low & vice-versa.
• Service Providers can manipulate the
extremes of service satisfaction through
adequate information & assurance.
Delight
Desired Service Level
Zone of Tolerance
Adequate Service Level
Unacceptable Service
3. Arousal Level
◊ Arousal Levels when plotted along a Continuum depict what kind of
destinations & activities need to be provided in order to make the
experience for the tourist a memorable one.
Too Little
Boredom
Too Much
Relaxed
Adventure Holiday
Frenzy, Panic
◊ The Arousal Criteria may or may not be part of the Basic Service.
E.g. While visiting the Rhone-Alps Region of France if customer is
provided an exclusive stay for 2 days at World-Class Ski Resorts the
arousal being part of basic service has a potential of creating Loyal
Customers.
UDAIPUR TOUR PACKAGE - DESIGN
Fly Free to Udaipur & Stay at Palace Hotels
2 Nights/ 3 Days Package
GRAND HERITAGE PALACES (Air Packages)
Shiv Niwas Palace Rs 19999
Fatehprakash Palace Rs 23999
Jagmandir Island Palace Rs.25999
ROYAL RETREATS (Hotel Packages)
Fateh Bagh, Ranakpur Rs 10999
Garden Hotel, Udaipur Rs 10999
Shikarbadi, Udaipur Rs 13999
The Aodhi, Kumbhalgarh Rs 13999
Inclusions:
Airfare Ex Delhi or Mumbai (except Royal Retreats) • Daily
breakfast & dinner • Accommodation on twin sharing basis •
Airport transfers • All sightseeing & transfers by AC car.
Attractions
• Crystal
Gallery
• Mewar
Sound &
Light Show
• Vintage
Classic Car
Collection
Service Quality
◘ The importance of Service Quality in Tourism
Marketing is relatively high being based on experience.
Goodwill earned effects present & future customer re-visits.
Definition:
1. User-based Approach: Customer-Oriented Quality places customer
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central to all aspects of the organization in terms of operational procedures.
In tourism marketing, customer needs are paramount to the improvement of
the service which if ignored can prove costly with customers moving to the
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competitors.
2. Excellence-based Approach: Excellence in service means employing
such a mix of hardware & software resources which meets customers
requirements in every possible situation. Infrastructure facilities,
accommodation, transport, information availability, professionalism,
historical culture & personal attitudes shape the service quality.
Models of Service Quality
1.Scandinivian Model of Service Quality:
• Customer Orientation is central to the thinking of this model, which
requires relationships to form throughout the service exchange as
customers perceptions are subjective & personal to themselves.
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• For building strong customer relationships there are 4 Q’s of service
quality which need to be focused upon for delivering best results to attract
a large number of tourists:
a) Design Quality: Goods/Services designed to meet customer needs
b) Production
Quality:
Aspects
of Servicestyle
Production System
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(e.g. food delivered during the tour)
c) Delivery Quality: Consistently meeting the standards promised to
customers (transit, accommodation & process of activities made to go
through standard)
d) Relational Quality: Trust & Relation with customer’s inner feelings
e) Functional & Technical Quality: represents the bundle of service
dimensions offered
Scandinavian Model of Service Quality
• Design Quality
• Production Quality
• Delivery Quality
• Relational Quality
• Functional Quality
• Technical Quality
• Image
• Experiences
• Expectations
CUSTOMER PERCEIVED
QUALITY= CUSTOMER
SATISFACTION
Marketing Implication –
Customer Oriented
Service
Should be
adopted at all
Levels of the
Entire Organization
Models of Service Quality
2. US Model of Service Quality:
• Focuses on adoption of Standardized Service Delivery Approach through
the development of Blueprinting technique , introduction of information
technology & the SERVQUAL technique.
• Blueprinting: Enables simplification of the management of the service
system; production of flow charts is done to design service in a
chronological order.
It is done in the commercial sections of the tourism marketing i.e. in
advertising & promotional section & in service delivery section in terms of
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departure,Click
hotel accommodation,
transit &subtitle
arrival.
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• Information Technology: Online Registration, E-tickets, e-information
about tour packages, western union money transfer, online hotel
bookings, passport/visa requirements etc.
• SERVQUAL: Reliability is the most important dimension in tourism, with
tangibles the second most important; followed by immediate
responsiveness & assurance & empathy.
US Model of Service Quality
BASIS
Standardized Techniques
Blueprinting the
Service Process
Components
• Immigration Process
• Transportation
• Accommodation
• Catering
• Sightseeing Tours
• Shopping & Other
Activities
Information
Technology
Applying Improvement
Measures on Service
Quality
• IT based Communication
• Fast Professional Services
• Experience Enrichment
SERVQUAL
• R – Reliable
• A – Assurance
• T – Tangibles
• E – Empathy
• R - Responsiveness
Tourism Marketing Strategies
1. Procurement: Tourism Provider needs to understand how
procurement decisions need to be made which includes identifying
what types of tour operators, tour agents & guides are required &
how to gather procurement data & open procurement process.
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2. Product Differentiation: Services sold both as final service product
& as intermediate inputs are major differentiating factor for
tourism.
As tourist is spending lot of money for leisure; they are interested to
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style of new
gain benefit
which
differentiation
by introduction
programs, organization of new events to draw tourists & should not
be based on the owner/manager perceptions.
3. Proper Communication: Internal & External Communication is vital
for tourism; Brand Awareness Events, Promotional Campaigns,
Building Trust & developing websites.
Tourism Marketing Strategies
4. Follow-ups & Feedback: Follow-up & feedback should be taken care
of in tourism with the growing competition; the customer satisfaction
should be given utmost priority.
Feedback provides input on any improvement required & enables
better execution of service in future.
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5. Develop new partnerships & packages for tourism: Increased
collaborative activity benefits all parties involved i.e. hoteliers,
restaurants, retailers & cultural groups.
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Ex: New packages such as museum tours coupled with meals at local
establishments, theatre packages with accommodations/meals & a
package of festival tickets.
6. Pricing: Before setting prices business & target market objectives;
cost of producing, delivering & promoting the product; prices charged
by competitors should be looked into.
KEY CRITICAL FACTORS IN
SMART TOURISM MARKETING
It involves answer to 3 smart questions for the business:
o
What motivates Tourism Consumers to choose one
destination or operator over another?
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o
Specifically what gets consumers to call or email a
tourism
service
provider
or destination
and
make a
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booking?
o
What one can provide to one’s customers as best?
o
Does one have an effective marketing plan for one’s
offerings?
COMPARATIVE STUDY
• SOTC - Leading Brand of Kuoni Travel Group
India, the country's largest Travel & Tourism
Company,
services to title
holidaystyle
makers
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from around the globe.
• Cox & Kings - Longest established travel
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company in the world, a premium brand in all
travel related services in the Indian
subcontinent.
SERVICES OFFERED
SOTC
COX & KINGS
Offers Flexible Holiday Plans; Offers all Travel Related
Positioning as Best Outbound Services; Positioning as One
Tour Operator
Stop Travel Fulfillment Center
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• Independent Global
Vacations
• Independent
ClickIndia
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Vacations
• Escorted Tours for Non
Resident Indians
• Luxury Vacations
• Destination Management
• Outbound Tourism
• Business
Travel
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• Domestic Tourism
• Incentive Solutions
• MICE
• Currency Exchange
• Travel Insurance
CUSTOMER SATISFACTION
SOTC
Desired Level
COX & KINGS
Desired Level
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Zone of Tolerance
Zone of Tolerance
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Adequate
Level
Adequate Level
By offering Specialized Global tour
packages to both Indian & Foreign
tourists with finest luxury
customer’s desired needs are
fulfilled.
By offering wide range of services
it operates within the zone of
tolerance in terms of customer’s
varied needs being fulfilled but is
not able to make a distinguished
mark in India.
SERVICE QUALITY
SOTC
COX & KINGS
Gap exists at:
Gap exists at:
PERCEPTION LEVEL
KNOWLEDGE LEVEL
• Prices being relatively high • Upgradation in service
customers perceptions
processes required
regarding service received • Diversification not being
needs to be positively
fully capitalized needs more
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reinforced
positioning
EXTERNAL COMMUNICATIONS EXTERNAL COMMUNICATIONS
LEVEL
LEVEL
• Collaborations with other • Extensive Tie-Ups with
tourism providers required
Corporates, Travel Co’s &
government required
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THANKYOU
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