1. 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 10 Product Development and Partnership

2. 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 Major Groups of Organizations in the Hospitality and Travel Industry Suppliers Carriers Travel trade intermediaries Destination marketing organizations (DMOs) There are four major groupings:

3. 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 10.1 The groups and sectors of the hospitality and travel industry.

4. 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 7.13A Trends in supplier and carrier sectors.

5. 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 7.13B Trends in supplier and carrier sectors (continued).

6. 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 7.13C Trends in travel trade intermediary and DMO sectors.

7. 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 7.13C Trends in travel trade intermediary and DMO sectors (continued).

8. 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 Overall Trends and Industry Realities a. More horizontal integration b. More vertical integration c. Introduction of a wide variety of new services, facilities, and travel alternatives d. The Internet’s major impact on all groups and sectors of the industry e. Increasingly competitive industry

9. 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 The Product/Service Mix 1. Staff behavior, appearance, and uniforms 2. Building exteriors 3. Equipment 4. Furniture and fixtures 5. Signage 6. Communications with customers and other publics

10. 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 Types of Partners Customers Organizations in the same business Organizations in related businesses Organizations in nonrelated businesses Online alliances

11. 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 Benefits of Partnerships Access to new markets Expansion of product/service mixes Increased ability to serve customer needs Increased marketing budgets Sharing of facilities and facility costs Enhanced image or positioning Access to partners’ customer databases Access to partners’ expertise