HOSPITALITY MARKETING CHAPTER 1

CHAPTER 1 What is Hospitality Marketing? 1.1 Marketing Basics 1.2 Hotel Marketing: A competitive Industry 1.3 The Importance of Hospitality Marketing

HOSPITALITY MARKETING Internet reservations for hotels are now routine (1) “W” Hotels are featuring high tech wireless amenities (2) Hilton Hotels announced plans for the first luxury hotel in space (6)

ROOMS In 100 years the total number of hotel rooms has grown from 10,000 to over (7) 3 million

Hospitality! Travelers want a clean room and someone to keep it clean. (10) Customers want quality food and someone to prepare and serve it well. (11)

Marketing Mix Product: what a business offers customers to satisfy needs Price: the amount that customers pay $ $ $ Promotion: combination of methods used to inform customers of the products Distribution: method used to get the product or service to a customer (12)

KEY MARKETING FUNCTIONS Payment plans, upgrades, budgeting, cash flow Marketing-information management Survey, history Financing Determine & satisfy needs, get money Selling Functions of Marketing Getting product to customer, service Pricing Distribution Value and cost of products, supply & demand pricing Promotion Product/Service management Designing, developing, improving product, stay competitive Images, Informing customers, advertising, P/R (COMPLETE HAND OUT) (14)

FUNCTIONS OF MARKETING Marketing Information Management: gathering and using information about customers Financing-acquiring and budgeting financial resources to stay in business and payment plans for customers Pricing-determining the value and cost of goods and services, supply and demand in travel industry determines this most of the time

FUNCTIONS OF MARKETING Promotion-informing customers about the products, services, images, ideas, advertising, publicity, public relations 5. Product/Service management-designing, developing, maintaining, improving products or services to meet the needs of customers 6. Distribution-means of getting a company’s products and services to the customer in the best way 7. Selling-communicating directly with the customers to determine and then satisfy their needs

Yield Management Yield management is the practice of varying the price of a room based on current demand. An example would be high rates in the summer for a motel room on the beach and low rates during the winter time for the same room. (15)

PRIME OBJECTIVE The prime objective of hospitality marketing is attracting and pleasing the customer. (1) Lesson 1.2 Hotel Marketing: A competitive Industry

Advertising campaigns Radio, TV, Newspaper, Internet and Direct Mail. PROMOTION Advertising campaigns use Radio, TV, Newspaper, Internet and Direct Mail. (3)

is a specific group of people who share similar characteristics (4) Target Market is a specific group of people who share similar characteristics (4)

Know Your Customer A lodging establishment must know their customers. (8) Most hotels and motels conduct marketing research. (9) Many use a survey or quality-quiz, usually at check-out time. (10)

Demographics The characteristics of a target market such as age, income, gender, and level of education. (11)

SERVICE MARKETING Hospitality industry involves Service Marketing because they sell to the ultimate consumer. (12) Service Marketing usually only gets one chance to make a good impression. (14) Hotel managers know that there is usually a nearby hotel about the same price and about the same service that is willing to try a little harder to earn the customers dollar.

INTANGIBLE PRODUCTS The hospitality industry sells intangible products: comfortable feeling, warm, safe, clean, individual attention by the staff. (12)

Amenities Amenities are those services or items offered to guests for convenience and comfort. (16) Amenities can be bed size, TV, air conditioning, phone service, movies-on-demand, desks, two-line phones, computer service, laundry, room service, etc. (17)

Association of America (2) TIA Travel Industry Association of America (2) Lesson 1.3

Jobs and Money! Travel and tourism is good for the economy. (5) You are a part of travel and tourism every time you eat at a restaurant. (4) Travel and tourism provides over 18 million jobs for Americans (3) Travel and tourism is the third largest retail industry in the US (1)

Lodging Facilities Lodging facilities operate 24 hr a day, seven days a week. (9) Hotel employees are responsible for providing a comfortable and enjoyable stay for their customers. (8)

Some management positions for hotels General manager-responsible for all operations (10) Front Office manager-reservations, room assignments, (10) Executive housekeeper-supervises all. Housekeeping staff, ensures all rooms are clean and comfortable(10) Food and Beverage manager-oversees all meals, drinks, banquets, meetings(10)

Some management positions for hotels Sales Director-supervise the sales staff, corporate accounts, special events, conventions(10) Human Resources Manager-recruiting, hiring, training, and employee benefits(10) Operations manager-keeps thing running, security, heat and air, electrical, grounds, safety(10) Financial manager-hotel receipts, expenditures, daily audits (10)

HOUSE DIVIDED A typical hotel or restaurant has 2 divisions: Front of the House which involves any area which the general public or guest has access. Guest rooms, meeting rooms, gift shop, pool Back of the House which involves any area which is usually not seen or frequented by the guests Human resources, accounting, housekeeping

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