Ch 13 Contemporary Issues in Tourism and Hospitality

Ch 13: Contemporary Issues in Tourism and Hospitality Marketing Copyright © SAGE Publications

Topics Covered Demographic trends Behavioural trends Tourism marketing in the experiential economy Responsible marketing of tourism Cause-related marketing in tourism Marketing sport and adventure tourism Marketing tourism in times of crisis Copyright © SAGE Publications

Tourism Trends in tourism marketing include a general growth in tourism, with certain sectors, like cruise ships, growing faster than others. It is predicted that there will be increased competition, and many more mergers among hotel chains, cruise lines, and other segments. One of the most significant implications of demographic change in this century is the ageing of the world’s population. The world median age is projected to rise from 26 years in 2000 to 44 years by 2100. Copyright © SAGE Publications

Figure 13. 1 Potential winning business designs in tourism Copyright © SAGE Publications

Tourism Trends The consumer of the future is likely to be seeking experiences, and there is an increasing desire of individuals to convert them into images and stories. There will be a shift towards inconspicuous consumption and a greater awareness of issues such as sustainable development, eco-tourism and ethical consumption. Consumers of the future will also demand more convenience, and personal service will increasingly outweigh price as the key differentiator. Copyright © SAGE Publications

Figure 13. 2 Forecast changes in the demographic structure of Europe Source: Eurostat (New. Cronos), Theme 3; demo, dpop + dpro, own calculation Copyright © SAGE Publications

Tourism Marketing in the Experiential Economy Experiential marketing - marketing initiatives that give consumers in-depth, tangible experiences, in order to provide them with sufficient information to make a purchase decision With experiential marketing the focus is on: o customer experiences and lifestyles o creating synergies between meaning, perception, consumption and brand loyalty o a more diverse set of research methods in order to understand consumers Copyright © SAGE Publications

Promoting Experiences In order to promote tourism experiences, tourism marketers will have to think beyond traditional advertising techniques, e. g: o via the internet o product placement o tryadvertising Experience advertising requires more creative expression on the part of advertisers. Advertising now is more about reasons why people do things and less about rational things that people factor into their decision-making. Copyright © SAGE Publications

Responsible Marketing of Tourism Increasing emphasis is being placed upon evaluating the likely impacts - such as direct or indirect economic impact - of any tourism development. Sustainable tourism - tourism which can maintain its viability in an area for an indefinite period of time Responsible environmental marketing - the balancing of environmental initiatives and environmental communication in order to achieve sustainable competitive advantage Copyright © SAGE Publications

Figure 13. 4 Model for Responsible Marketing Copyright © SAGE Publications

Cause-Related Marketing in Tourism Cause-related marketing (CRM), is corporate philanthropy organized to increase the bottom line. It is basically a marketing programme that strives to achieve two objectives – improve corporate performance and help worthy causes – by linking fund raising for the benefit of a cause to the purchase of the firm’s products and/or services. CRM efforts can be categorized into autonomously branded, co-branded, house branded, and industry branded approaches. Copyright © SAGE Publications

Table 13. 1 Branding approaches to CRM Features Autonomous Co-Branded House Branded Industry Branded Charity Reputation Established/ Independent of company Tied to company and charity Company Dependent Established/ Independent of industry Firm’s Involvement in charity administration None Partial to jointly administered Company controlled None Company control over charity use of funds raised by CRM Programme Limited Some influence Complete Limited Strategic Leverage external brand Leverage brand congruence Support existing company/product brand Leverage industry brand CRM Promotional Objective Demonstrate firm-charity congruence where not obvious Demonstrate firmcharity brand congruence Promote firm’s commitment Promote industry’s commitment Copyright © SAGE Publications

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 Five areas of sport tourism: 1. Sport tourism attractions 2. Sport tourism resorts 3. Sport tourism cruises 4. Sport tourism tours 5. Sport tourism events Copyright © SAGE Publications

Marketing Sport and Adventure Tourism Adventure tourism brings together travel, sport, and outdoor recreation, and, like sport tourism, is one of the fastest-growing segments of the tourism industry. Adventure tourism o hard and soft adventure tourism o has been subject to a process of commodification: - a deferring of control to experts - a proliferation of promotional media - the application of technology in adventurous settings Copyright © SAGE Publications

Marketing Tourism in Times of Crisis A crisis for a destination is normally the result of external factors impacting negatively on the appeal and marketability of the destination concerned. Such factors may be acts of terrorism, national disasters, health issues, crime or international conflict. Three steps to marketing management of a destination crisis: 1. Establishing a crisis management team 2. Promotion of the destination during and after the crisis 3. Monitoring recovery and analysing the crisis experience. Copyright © SAGE Publications