Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. H O S P I T A L I T Y & T R A V E L M A R K E T I N G & T R A V E L M A R K E T I N G Chapter 12 Packaging and Programming

Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. H O S P I T A L I T Y & T R A V E L M A R K E T I N G & T R A V E L M A R K E T I N G Definition of Packaging The combination of related and complementary services into a single-price offering

Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. H O S P I T A L I T Y & T R A V E L M A R K E T I N G & T R A V E L M A R K E T I N G Definition of Programming The development of special activities, events, or programs to increase customer spending, or to give added appeal to a package or other hospitality/travel service

Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. H O S P I T A L I T Y & T R A V E L M A R K E T I N G & T R A V E L M A R K E T I N G Figure 12.1 Relationship of packaging and programming.

Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. H O S P I T A L I T Y & T R A V E L M A R K E T I N G & T R A V E L M A R K E T I N G Figure 12.2 Reasons for the increased popularity of packaging and programming.

Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. H O S P I T A L I T Y & T R A V E L M A R K E T I N G & T R A V E L M A R K E T I N G Key Roles of Packaging and Programming 1.Smoothing patterns of business 2.Improving profitability 3.Assisting in use of segmented marketing strategies

Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. H O S P I T A L I T Y & T R A V E L M A R K E T I N G & T R A V E L M A R K E T I N G 4.Complementing other product/service- mix elements 5.Bringing together related hospitality and travel organizations Key Roles of Packaging and Programming (continued)

Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. H O S P I T A L I T Y & T R A V E L M A R K E T I N G & T R A V E L M A R K E T I N G Packages developed by intermediaries— including tour wholesalers and operators, some travel agents, and convention/ meeting planners Packages developed by others—suppliers, carriers, destination marketing organizations, clubs, and special-interest groups Packaging Concepts Offered by Industry

Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. H O S P I T A L I T Y & T R A V E L M A R K E T I N G & T R A V E L M A R K E T I N G Four Ways of Classifying Packages Package elements Target markets Duration or timing Travel arrangements or destinations

Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. H O S P I T A L I T Y & T R A V E L M A R K E T I N G & T R A V E L M A R K E T I N G How to Develop Effective Packages Include attractions or other demand- generators. Provide value to the customers. Offer consistent quality and compatibility among elements. Be well planned and coordinated. Provide a distinctive customer benefit. Cover all the details!

Copyright 2010 Delmar, a part of Cengage Learning. All Rights Reserved. H O S P I T A L I T Y & T R A V E L M A R K E T I N G & T R A V E L M A R K E T I N G How to Effectively Price Packages 1. Identify and quantify the fixed costs. 2. Identify and quantify the variable costs. 3. Calculate the total package costs on a per-person basis. 4. Add a markup or margin for profit. 5. Calculate the single supplement.