1. CHAPTER 6 PROMOTING TO TARAGET MARKETS

2. LESSONS: 6.1 CUSTOMER DEMOGRAPHICS 6.2 THE BUSINESS TRAVELER 6.3 THE LEISURE TRAVELER 6.4 THE INTERNATIONAL TRAVELER

3. Goals: Define Target Market Explain role of demographics Define Business Traveler Describe trends affecting travelers Define Leissure Travel Describe trends in leisure travel Describe importance of international travel

4. Hotel and motels must determine whom they wish to have as their clients and study these target markets to be successful. TARAGET MARKET

5. TARAGET MARKET IS: The specific group of people that a business intends to reach for customers  You must know the needs and wants of the group  You must know their preferences and specific information about the group

6. Demographics: Specific information about a target market which includes:  Customers’ age  Gender  Marital status  Income  Educational Level  Attitudes

7. Niche Marketing Involves selling goods and services to a smaller, uniquely defined group  Examples: Business travelers Leisure travelers Sports travelers Families Senior Citizens (most sought after group) Ethnic groups

8. Market Segment Group within a larger market who share one or more characteristics  Example There are millions of country music fans but there is a smaller market segment that just likes to go to Branson, Missouri for the shows

9. Five Elements Of Market Segmentation 1.Geographic Segmentation: dividintg markets into physical locations such as South, Midwest, West Coast, East Coast 2.Demographic Segmentation: focuses on income, profession, gender, education level 3.Psychographics: focuses on attitudes and lifestyles-ex. fans of athletic teams, gamblers, theater goers, stock car racing

10. Five Elements Of Market Segmentation 4.Product Usage: customers that use a particular product or service 5.Benefits Derived: the value people attach to a product or service, such as the enjoyment they get from staying at the beachfront hotel instead of inland or the pleasure they get when eating at a restaurant instead of a fast food outlet

11. More Demographics Seniors are a growing segment of hospitality market, many are retired business executives that have money Seniors like travel and dining They like to travel with people their own age Seniors are made up of more women than men (4 to 1)

12. More Demographics Baby Boomers: Born in the 50s and early 60s, raised in more prospereous times, use credit, huge potential market, seek expensive hospitality venues, more luxury

13. More Demographics Interactive Marketing: like a high-tech Yellow page Directory Involves putting information about local history, culture, restaurants, museums, and other attractions on the guest room television The guest selects what ads they want to see, what they want to know about in the area

14. The Business Traveler Travel to meetings, conferences, and trade shows Often use airlines This type of travel is at an all time high

15. Business Traveler Trends Take about 10 trips per year Average stay of 4 days Only about 15% shopped for travel deals Often took spouse with them Usually have the latest technology with them

16. Traveler Trends Health Trend: “staying healthy” is high priority, exercise areas are important, spas, recreational facilities Dining Styles: good dining is a favorite reason to travel, also alcoholic drinks More Female Executives: nearly 50% of business travelers are women, very few women travel with their children

17. Women Travelers: What they want Responsive service from the hotel Less night travel Pay more attention to hotel security More often order room service Prefer separate vanities, make-up mirrors Use hair dryers more Use airport shuttles more Tour cities on trip more often than males

18. The Leisure Traveler Travel taken solely for vacation or pleasure  Examples: Family vacations Weekend getaways Cruises Guided tours Ballgames

19. The Leisure Traveler Adventure Travel  Hard Adventure Travel: requires physical strength and endurance for such things as whitewater rafting, snorkeling, scuba diving, off-road biking  Soft Adventure Travel: includes activities that require less rigorous exertion, such as a cruise ship tour of Alaska, birdwatching in Texas

20. The Leisure Traveler Casinos  Gaming industry is large and growing  Sometimes set up on boats  Raise millions of tax dollars for schools, roads, and other public works  Provides many jobs  Las Vegas is the premier casino city  Have added children attractions

21. The Leisure Traveler Preferences:  Hotels with basic cable and irons with ironing boards  In-room coffee makers  Premium TV channels  Pay-per-view TV  USA Today Newspaper

22. Senior Travelers Soon will be the largest target market They have greater disposable incomes They have more time to travel Half of the Baby-Boomer generation will live to be 100 Seniors seek experiences that are educational and are an adventure They expect high-quality facilities and services

23. Alternative Leisure Lodging Timeshares:  Lodging properties owned by multiple families and individuals  Available to each owner for one week during the year  Property taxes and interested paid on Timeshare loans are tax deductible  Partnerships allow you to trade for different locations

24. Incremental Revenue Sales to new customers outside the normal distribution channel Prime example: Internet customers on Priceline.com and Cheap Tickets which sell more than 20,000 airline tickets a day that would otherwise go unsold

25. International Traveler International Travel is on the rise The number of Americans traveling internationally is almost 100 million Average spending is $3,500 each Must have passports, visas, immunization records, international driving permits, and other documents

26. International Traveler Usually stay longer Expect to pay higher prices Often want long-term commitments from facilities for return trips Usually expect earlier check- in and later check-out times Appreciate special touches that make them feel at home- special meals-beverages

27. Research You must learn as much as possible about your destination when planning a trip to avoid problems

28. Travel Agents More than 200,000 U.S. travel agents account for almost 80% of the airline, cruise, and package tour sales They book more than 50% of all car rentals

29. Types of Travel Agents Full-Service: make money on commissions Specialists or Destination agents: focus on travel niche such as trip to on country Rebaters: return part of commission to traveler to give them lowest price Fee-based: charge clients a fee

30. Insurance Most think it’s a good idea Flight insurance covers death and injury Baggage and personal effect insurance covers damage to your stuff Trip cancellation and interruption insurance applies to charter and package tours that are canceled Automobile insurance is a good idea if you drive a rental car outside the U.S. Personal health and accident can cover you outside the U.S.- your regular health insurance may not be good in another country

31. Making Reservations Booking reservations through an agent usually does not increase cost Agents usually make their money from commissions Rates vary greatly between peak and off-peak seasons When at a hotel, the Concierges can provide personalized service, travel information, transportation, restaurant and entertainment suggestions