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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’ Click to edit Master title style ADVENTURE Tourism Click to Cruise TOURISM subtitle edit PRODUCTS Master 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. Click to edit Master title style Customer Contacts Service Provider Service Provider Makes Arrangements Advertising Reservation & Service Experienced at Destination Return & After-Sales Service Click to edit Master subtitle style -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. Click to edit Master title style • 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 returningClick back. to edit Master subtitle style 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. Click to edit Master title style • 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 Click to edit Master subtitle style 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. Click to edit Master title style 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 for Meeting Competition thesubtitle tourism service provider to edit Master style 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 Click to edit Master title style 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 Click to edit Master subtitle style 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. Click to edit Master title style • 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 Click toManufacturing edit Master subtitle (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 to edit Master style departure,Click hotel accommodation, transit &subtitle arrival. Click to edit Master title style • 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. Click to edit Master title style 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 Click to requires edit Master subtitle 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. Click to edit Master title style 5. Develop new partnerships & packages for tourism: Increased collaborative activity benefits all parties involved i.e. hoteliers, restaurants, retailers & cultural groups. Click to edit Master subtitle style 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? Click to edit Master title style o Specifically what gets consumers to call or email a tourism service provider or destination and make a Click to edit Master subtitle style 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 Click toproviding edit Master from around the globe. • Cox & Kings - Longest established travel Click to edit Master subtitle style 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 Click to edit Master title style • Independent Global Vacations • Independent ClickIndia to edit Vacations • Escorted Tours for Non Resident Indians • Luxury Vacations • Destination Management • Outbound Tourism • Business Travel Master subtitle style • Domestic Tourism • Incentive Solutions • MICE • Currency Exchange • Travel Insurance CUSTOMER SATISFACTION SOTC Desired Level COX & KINGS Desired Level Click to edit Master title style Zone of Tolerance Zone of Tolerance Click to edit Master subtitle style 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 Click to edit Mastereffective subtitle style reinforced positioning EXTERNAL COMMUNICATIONS EXTERNAL COMMUNICATIONS LEVEL LEVEL • Collaborations with other • Extensive Tie-Ups with tourism providers required Corporates, Travel Co’s & government required Click to edit Master title style THANKYOU Click to edit Master title style Click to edit Master subtitle style