1 July 2013

Understanding of Marketing within the Tourism Industry

There are 5 main sectors in travel and tourism:
I. Hospitality sector
II. Attractions and Events sector
III. Transport sector
IV. Travel organisers and intermediaries sector
V. Destination organisation sector (Middleton et al. 2009).

According to the AMA (American Marketing Association, 2007) marketing is the activity, set of institutions and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients , partners and society at large.

Marketing can be easily explained as the process of achieving voluntary exchanges between 2 parties, the 2 parties being: a) users or customers who choose to buy or use products or other services and b) producers, organisations and other institutions which design and apply products or other services to users.

5 important propositions which are entirely relevant to travel and tourism marketing but not derived from it:
I. Marketing is a management orientation or philosophy.
II. Marketing comprises three main elements linked within a system of exchange transactions.
III. Marketing is concerned with the long term strategy and the short term tactics.
IV. Marketing is especially relevant to analysing and responding to 21st century market conditions and can make a major contribution to sustainable development.
V. Marketing facilitates the efficient and effective conduct of business (Middleton et al. 2009).

Main aspects of supply:
I. Inseparability and intangibility of services that are performed other than produced.
II. Perishability based on a fixed capacity in the short run and inability to created stocks of product that makes tourism businesses highly vulnerable to short-run fluctuation in demand.
III. Seasonality.
IV. High fixed costs determining many of the short-run marketing methods used in travel and tourism to manage demand, especially the widespread use of price discounting to achieve last minute sales.
V. Interdependence and collaborative marketing including the public sector (Middleton et al. 2009).

There are different models that can be used to analyse a tourism destination and its products, to promote it as well as analysing the impacts of others on the industry, the products and so on such as : Ansoff model, Porter's five forces and so on.