Chapter 13 CONTEMPORARY ISSUES IN TOURISM AND HOSPITALITY MARKETING Prepared by Simon Hudson, Haskayne School of Business University of Calgary and Marion Joppe, University of Guelph 13-1 Copyright © 2009 by Nelson Education Limited. Contemporary Issues in Tourism and Hospitality Marketing Chapter 13 Topics • Trends in tourism and hospitality marketing • Marketing tourism in the experiential economy • Growing importance of responsible marketing • Application of cause-related marketing in tourism • Marketing of sport and adventure tourism • Marketing of tourism at times of crisis 13-2 Copyright © 2009 by Nelson Education Limited. Contemporary Issues in Tourism and Hospitality Marketing Chapter 13 Tourism Marketing Trends Growth trends • Tourism is expected to grow 4.5 percent annually over the next decade • China will soon be most popular destination • By 2020, an estimated 50 million Indians will tour overseas • Business travel from, and among, developing countries will grow more rapidly than business market • Two growth areas: China and India • Certain sectors will grow faster than others, for example, cruise industry • Global competition for travellers will continue to erode Canada’s traditional travel markets 13-3 Copyright © 2009 by Nelson Education Limited. Contemporary Issues in Tourism and Hospitality Marketing Chapter 13 Tourism Marketing Trends • Demographic trends – over the next 20 years, key markets for outbound travel will remain Europe, Asia, and the Americas – significant implications of demographic change in this century is aging of world’s population – world median age is projected to rise from 26 years in 2000 to 44 years by 2100 (see Table 13.1 for Canada’s forecast age structure) 13-4 Copyright © 2009 by Nelson Education Limited. Contemporary Issues in Tourism and Hospitality Marketing Chapter 13 Forecast Age Structure of the Canadian Population (000s) Table 13.1 13-5 Copyright © 2009 by Nelson Education Limited. Contemporary Issues in Tourism and Hospitality Marketing Chapter 13 Tourism Marketing Trends • Behavioural trends – life caching • the increasing desire of individuals to convert those experiences into images and stories, which in return enable them to engage others • rapid improvements in technology allow consumers to capture, store, collect, and display their holiday experiences to friends or family – technology affects the way travel is purchased 13-6 Copyright © 2009 by Nelson Education Limited. Contemporary Issues in Tourism and Hospitality Marketing Chapter 13 Tourism Marketing in the Experiential Economy • Experiential marketing – marketing initiatives that give consumers in-depth experiences to provide them with sufficient information to make a purchase decision 13-7 Copyright © 2009 by Nelson Education Limited. Contemporary Issues in Tourism and Hospitality Marketing Chapter 13 Tourism Marketing in the Experiential Economy • Tryvertising – emerging variation on product placement – practice of making consumers familiar with products and services by trying them out, so they can make a purchase decision based on experience – Example: Hotels partner with luxury car makers to offer high-end model test drives to guests during their stay 13-8 Copyright © 2009 by Nelson Education Limited. Contemporary Issues in Tourism and Hospitality Marketing Chapter 13 Responsible Marketing of Tourism • Sustainable tourism – tourism that can maintain its viability in an area indefinitely and does not damage the environment – Profile: Machu Picchu, Peru – Snapshot: Praia Do Forte, Brazil 13-9 Copyright © 2009 by Nelson Education Limited. Contemporary Issues in Tourism and Hospitality Marketing Chapter 13 Responsible Marketing of Tourism • Responsible environmental marketing – the balancing of environmental initiatives and environmental communication in order to achieve sustainable competitive advantage 13-10 Copyright © 2009 by Nelson Education Limited. Contemporary Issues in Tourism and Hospitality Marketing Chapter 13 A Model of Responsible Marketing 13-11 Copyright © 2009 by Nelson Education Limited. Contemporary Issues in Tourism and Hospitality Marketing Chapter 13 Cause-related Marketing in Tourism • Cause-related marketing – Corporate philanthropy organized to increase the bottom line 13-12 Copyright © 2009 by Nelson Education Limited. Contemporary Issues in Tourism and Hospitality Marketing Chapter 13 Branding Approaches to CauseRelated Marketing Table 13.2 13-13 Copyright © 2009 by Nelson Education Limited. Contemporary Issues in Tourism and Hospitality Marketing Chapter 13 Marketing Sport and Adventure Tourism • Sport tourism – travel away from a person’s primary residence to participate in a sporting activity for recreation or competition; travel to observe sport at the grass roots or elite level; and travel to visit a sport attraction 13-14 Copyright © 2009 by Nelson Education Limited. Contemporary Issues in Tourism and Hospitality Marketing Chapter 13 Five Areas of Sport Tourism • • • • • Attractions (e.g., Hockey Hall of Fame) Resorts (e.g., golf and tennis resorts) Cruises Tours (e.g., Roadtrips) Events (e.g., Olympics) 13-15 Copyright © 2009 by Nelson Education Limited. Contemporary Issues in Tourism and Hospitality Marketing Chapter 13 Marketing Sport and Adventure Tourism • Adventure tourism – Brings together travel, sport, and outdoor recreation – Classified into “hard” and “soft” adventure 13-16 Copyright © 2009 by Nelson Education Limited. Contemporary Issues in Tourism and Hospitality Marketing Chapter 13 The Role of Marketing in Crisis Management • Destination crisis – The result of external factors beyond the control of managers and authorities negatively affecting the appeal and marketability of a destination 13-17 Copyright © 2009 by Nelson Education Limited. Contemporary Issues in Tourism and Hospitality Marketing Chapter 13 The Role of Marketing in Crisis Management Responding to crisis 1. Establish a crisis management team 2. Promote the destination during and after the crisis 3. Monitor recovery and analyzing the crisis experience 13-18 Copyright © 2009 by Nelson Education Limited.