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Promoting to Target Markets Chapter 6. Unit Essential Question What are the three main hospitality markets and what promotional activities are most effective.

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Presentation on theme: "Promoting to Target Markets Chapter 6. Unit Essential Question What are the three main hospitality markets and what promotional activities are most effective."— Presentation transcript:

1 Promoting to Target Markets Chapter 6

2 Unit Essential Question What are the three main hospitality markets and what promotional activities are most effective to reach them?

3 Essential Question 1 What role does demographics play in hospitality marketing?

4 Customer Demographic F Meeting the Needs of a Target Market –Market: –Market: A group of all potential customers who share common needs and wants, and who have the ability and willingness to buy the product. –Target Market: The specific group of people the business wants to reach. –Niche Market: A small, uniquely defined group of people.

5 Customer Demographic –Market Segmentation: Dividing the total market into smaller groups of people who share specific needs and characteristics. –Elements of Market Segmentation u Geographics: Segmentation of the market based on where people live.

6 Customer Demographic u Demographics: Statistics that describe a population in terms of personal characteristics. These include age, gender, income, ethnic background, education, etc. u Psychographics: Involves the study of customers based on lifestyle, and the attitudes and values that shape it.

7 Customer Demographic u Product Benefits: Built in features of products in response to consumer needs and wants. u Product Usage: Involves the frequency of use of a product. This information allows marketers to promote preferred goods and services. F A Closer Look at Demographics –Astute marketers pay attention to demographics. –Special attention must be given to female business travelers, senior citizens, and families who travel short distances to sporting events.

8 Customer Demographic –Marketing to Seniors u The hospitality industry must carefully consider price and security. u Seniors enjoy traveling with others in their age group. u The current senior population is disproportionately women to men; nearly 4 to 1.

9 Customer Demographic –Marketing to Baby Boomers u Baby Boomers present a great opportunity to the hospitality industry. u Unlike current senior citizens who grew up being thrifty during the depression years, Baby Boomers freely use credit and are more likely to spend money on a wide array of hospitality venues.

10 Customer Demographic –Self-Perception and Reality u Most people think of themselves as being younger than their real age. u Advertisers will use pictures of younger people to advertise to an older group. –Interactive Marketing u Interactive Marketing: Advertisements on a hotel guest’s television. u This sophisticated means of advertising can track guest interests and make the ordering process easier for customers.

11 Essential Question 2 What do business travelers want?

12 The Business Traveler F The Business Traveler –Business Travelers: –Business Travelers: Potential customers who are on the go for meetings, conferences, and trade shows within the United States and throughout the world. –Teleconferencing and videoconferencing was predicted to reduce business travel however, business travel has not decreased. –The number of business travelers is at an all time high.

13 The Business Traveler –What Business Travelers Want u A place to sleep u An office u A work room u A place to entertain

14 The Business Traveler F Trends Worth Watching –The average business traveler takes ten trips per year. –Only 4% of business travelers order an in-room movie. –Importance of High Technology u Business travelers are addicted to technology. u Mobile cell phones and laptop computers are common devices toted by business travelers. u Hotel rooms must be more accessible to technology needs.

15 The Business Traveler –Health trends u 50% of travelers over 35 take daily vitamins compared to 40% under 35. u 28% of young business travelers carry medical information on business trips compared to 38% of veteran business travelers. u 25% of the younger generation use the gym versus 14% of the older travelers. u Hotels must continue to provide state-of-the-art equipment in their spas and recreational facilities to meet the demand of the new generation.

16 The Business Traveler –Dining styles u 30% of men and 22% of women enjoy dinning out. u 13% of men and 8% of women will likely have an alcoholic drink. u 23% of men and 18% of women will have a dessert. u 31% of new business travelers will use in-room coffee makers compared to 49% of veteran business travelers. u Younger travelers are less likely to eat alone. u 17% of young travelers will unlock the mini-bar as opposed to 9% of experienced travelers.

17 The Business Traveler –More female executives u Women want responsive service and respect from hotels equal to that given to their male counterparts. u Women tend to research an area more than men before traveling to a business location. u 33% of women will take a friend or significant other with them on a business trip and plan leisure time compared to 13% of men.

18 Essential Question 3 What does the leisure traveler want?

19 The Leisure Traveler F Leisure Traveler –Leisure Travel: –Leisure Travel: Travel taken solely for vacation or pleasure. –Leisure travel is a precious commodity for most individual families. –It is important for the leisure activity to provide the most satisfying experience possible.

20 The Leisure Traveler –Adventure Travel u Hard Adventure Travel –Requires physical strength and endurance. –Examples include: whitewater rafting, snorkeling or scuba diving, off-road biking, etc. u Soft Adventure Travel –Requires less rigorous exertion. –A growing senior population is demanding an increasing amount of soft adventure travel. –Examples include: Cruise ship tour of Alaska, Bird-watching expedition on the south coast of Texas.

21 The Leisure Traveler F Leisure Travelers’ Preferences –Leisure travelers have different preferences than business travelers. –People on vacation want to enjoy cable television and an easy to read newspaper like USA Today.

22 The Leisure Traveler –The Impact of Senior Travelers u Half of the Baby-Boomer generation will live to be 100. u In 1900, only about a quarter of the population lived past age 65. Today, 80% does. u At the beginning of the 20 th century, the average life expectancy was 42 years. Today, it is 84 years. u People age 85 and older are the fastest growing segment of the population.

23 The Leisure Traveler –Alternative Leisure Lodging u Timeshares –These properties are a tax deductible investment for some individuals. –This type of investment allows individuals families to vacation in an apartment or condominium. u Regardless of lodging type, the key to success for the hospitality industry is occupancy. u Airline seats and hotel rooms are perishable commodities. u Competition has made it more difficult to sell out.

24 The Leisure Traveler –Incremental Revenue u Incremental Sales: Sales to new customers outside the normal distribution channel. u The internet has helped the hospitality industry sell additional rooms and airline tickets. u Priceline and Cheap Tickets allow consumers to purchase their hospitality needs over the internet.

25 Essential Question 4 Why is international travel important and what special considerations must be made for the international traveler?

26 The International Traveler F The Growth of International Travel –The United States is the top destination for international travelers. –Welcome to Our Country u International consumers are not afraid of high prices. u International customers are very loyal when they receive good accommodations and service. u International companies do not always understand how U.S. businesses operate. The idea of going after the highest bidder instead of a long-term relationship is a turn-off for some international customers. u Long-term relationships take time and nurturing.

27 The International Traveler –Making Guests Comfortable u Hotels interested in the international traveler will hire people who can speak more than one language. u Hotels that want international business will have flexible arrival and departure times. –Most international flights leave the U.S. in the evening so check-out should be extended to 4 or 5 with out an extra charge. –Most flights from Europe arrive between 6 and 7 AM so early check-in should be available to help adjust from Jet Lag: A feeling of fatigue and disorientation caused by the disruption of the body’s normal rhythms.

28 The International Traveler –What’s for Dinner? u International travelers appreciate touches that make them feel at home. u Understanding cultures and their culinary peculiarities is a must for hotels to be successful in the international traveler market. u Some international travelers smoke more frequently than others and do not expect restrictions on their practice. Smart managers of hotels and restaurants make appropriate adjustments for groups from a specific area in the world.

29 The International Traveler F Bon Voyage –International travel requires appropriate research. –Selecting A Travel Agent u Travel agents are still widely used for international travel. u Full-service travel agencies: –Provide tailored service and personal attention to their customers. –They earn commissions on lodging, airline tickets, and car rentals. –Using a travel agent does not normally increase the price since agents receive a commission.

30 The International Traveler u Specialist or destination agents: –Focus on special travel niches. –Examples include: Tours of Italy, Skiing in Switzerland, Cruses, Dude Ranches, etc. u Rebaters: –They give part of their commission back to travelers in order to provide the lowest prices. –They deal with people who know exactly where and how they are going to travel. u Fee-based agents: –They charge clients a fee for their services. –They do not receive commissions from service providers.

31 The International Traveler –Insurance for International Travel u Insurance for international travel is a good idea. u If the airline goes bankrupt, the political environment becomes to unsafe, or a trip is cancelled, the insurance covers expenditures that otherwise would be lost. u Travelers buy flight insurance to cover possible death and injury due to a crash, collision, fire, or other catastrophe.

32 The International Traveler –Working With International Hotels u Concierges: Provides personalized service to hotel guests. u They are a good source of information and can arrange any assistance that the guest may require.

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