Chapter 3- The
Hospitality & Travel
Marketing System
What is Marketing?
Is our industry too diverse to have a common
marketing approach?
• A. Diversity of the Hospitality and Travel Industry
• B. A Common Marketing Approach Is Available
Many Different Approaches to Defining The
Industry
• It’s the Hospitality Industry
• “The hotel, restaurant, entertainment, and resort industry”
• Includes lodging, restaurants and foodservice, casinos and gaming
• Cruise lines can be included because they provide beds, meals,
and beverages, however they classify themselves as the cruise
industry.
• It’s the Travel and/or Tourism Industry!
• “tourism has become one of the major players in international
commerce, and represents at the same time one of the main
income sources for many developing countries” (UNWTO).
Many Different Approaches to Defining The
Industry
• It’s the Restaurant or Foodservice or Food Service Industry!
• The National Restaurant Association (NRA) in the U.S. represents
the restaurant industry. The Canadian Restaurant and
Foodservices Association (CRFA) represents Canada.
• CRFA says restaurants represent “restaurants, bars, cafeteria, and
social contract caterers, as well as accommodation,
entertainment, and institutional foodservice.
• It’s the Lodging Industry!
• Hotel industry, the resort industry, and the campground industry.
Many Different Approaches to Defining The
Industry
• It Depends Where you are!
• Outside of the United States tourism industry is well accepted as
the umbrella term for the entire industry, including hospitality
businesses.
It’s not the industry at All!
• NAICS (North American Industry Classification System) shows
that hospitality and travel organizations are scattered among
several NAICS codes.
• NAICS is convenient way of looking at the industrial structure
of a country.
No Universally Accepted
Definition of the Industry
• People in the industry and educators have a sense of unity and
belonging in using a common definition of the field.
• Influencing legislation and government policy is a reason for
the dividing the industry into groups that share common
characteristics.
• Sectors and groups
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Suppliers
Carriers
Travel trade intermediaries
Destination marketing organizations (DMOs).
The Systems Approach
• An alternative way of looking at industries and organizations.
• A system is a collected of interrelated parts that work together
to achieve common objectives.
• Macro-system
• Exists at the hospitality and travel industry level
• Micro-systems
• Are found at the individual organization level.
• Characteristics of Systems in the Hospitality and Travel Indus.
• Openness- the micro-systems or individual organizations in the
hospitality and travel industry which are dynamic, constantly
undergoing change.
Systems Approach Cont.
• Complexity and Variety
• Range of small businesses to multinationals conglomerates.
• The interrelationships among the different organizations are
complex.
• Responsiveness
• Must be responsive to change or we will not survive
• All systems must have feedback mechanisms
• Competitiveness
• Competitive power and intensity increase as large corporations
increase in size and market share.
• Interdependency
• Macro system includes a variety of interdependent and
interrelated businesses and organizations involved in serving the
needs of customers who are away from home.
Systems Approach Cont.
• Friction and Disharmony
• Points of conflict, stresses, and tensions
• Do not perform exactly as we think they should.
The Hospitality & Travel
Marketing System
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Where are we now?
Where would we like to be?
How do we get there?
How do we make sure we get there?
How do we know if we got there?
System Fundamentals
• 1. Strategic marketing planning
• Process of developing long term plans for marketing
• 2. Marketing Orientation
• Satisfying customer needs and wants must have top priority.
• 3. differences between product and services marketing
• Business of marketing and providing services
• 4. Understanding Customer Behavior
• Fully appreciate the personal and interpersonal factors that
influence customer behavior.
Benefits of Using the System
• 1. Priority on planning
• Plan ahead and anticipate future events
• Short term/Long Term
• 2. Logical flow of efforts
• Right questions are asked at the right time
• (where are we now? Where would we like to be?)
• 3. Better balance of marketing activities
• Results from using the hospitality and travel marketing system
• 5 questions are given equal priority.
Relationship of the system to
strategic & tactical marketing
planning
• Long-term (strategic) planning
• A period of more than two years
• Short-term (tactical) planning
• Covers two years or less