HOSPITALITY AND TOURISM MARKETING STRATEGIES

Hospitality and Tourism Marketing Strategies

Hospitality and Tourism Marketing Strategies

The objective of this essay is to examine the subject of tourism marketing, with the main focus on how tourism marketing strategies and activities are responding to progress in information technology. Firstly, there is a brief outline of the key concepts in both tourism and marketing, followed by an introduction of IT and how it has been applied in the past. The essay then develops further with a more detailed examination of IT as it is presently, and its affect on tourism marketing. Finally, there is a conclusion, with a summary of the main points illustrated.

“Tourism involves the movement, accommodation, entertainment and general servicing of clients from one geographical location, to another. These activities must be combined differently, integrated and 'packaged' to suit complex and rapidly changing consumer requirements.” (Poon, 1993). Governments encourage the growth of tourism, as it is a powerful source of economic activity. The marketing of tourism, like all businesses, requires a need to create customer value and satisfaction. Marketing (in brief) is about identifying and satisfying consumer needs at a profitable level. Part of this process is creating a suitable marketing mix that can be used to its fullest potential (by giving you a competitive advantage), which commonly comprises of product, price, place, and promotion. Of course, there is a lot more to explain about marketing, but the main focus of this essay is to look at IT with tourism marketing.

“Quality is critical for competitive success. The potential of IT to improve the quality of travel and tourism services is currently under-exploited” (Poon, 1993). However, companies do recognise that they can develop an effective competitive strategy by lowering distribution costs and improving the service provided. A review of the emergence of IT and its importance follows.

IT has changed the way in which the industry works but has also unveiled many new opportunities and challenges. (For instance, tasks are done differently and new styles of distribution channels have become apparent.) Companies can best enhance their competitive performance by effectively exploiting new technologies. In tourism, it is not only some organisations that have learned to use technology but all of them, including travel agents, hotels, and airlines. This is due to the 'information-intensity' of the industry (where success depends on recognising and reacting to fast changing customer needs), and has led to a rapid flow of technology throughout. Effective use of technology has become fundamental to the travel industry and according to Poon (1993), no player will escape its impacts. From the use of computers by airlines in the 1950s to the travel agency use of PCs linked to those airline systems in the 1990s, the change has been exciting. Computerisation has fashioned customer convenience, improved productivity with speed, and reduced costs of making individual bookings. Furthermore, communication, interactivity, and competitiveness are enhanced. Hence, with the very nature of tourism, the development of ITs have inevitably taken on an important role in ...