Services Marketing

Chapter 24 : Tourism & Travel Services Marketing - (Hotel, Tourism & Transportation Services)

Hotel Industry

Major Characteristics of Hotel Industry

Market Segmentation

Geographic Segmentation
Demographic Segmentation

Marketing Strategy

Marketing Mix

Product
Pricing
Place
Promotion
People
Physical Evidence
Process

Recent Trends in Hotel Industry
Hotel Industry in India

Chapter Summary

The hotel industry is dependent on tourism and travel industries, and together they constitute the hospitality industry. The demand variation in the hotel industry depends on various factors like the economy, socio-political conditions, government regulations, business cycle, weather and seasonal changes, festivals etc. The hotel service is a perishable service with a fixed or limited supply. It is characterized by high investment and low variable costs.
 
The market for the hotel industry can be geographically segmented as tourist spots and commercial centers. On the other hand, based on customers, the market can be segmented as premium segment, leisure segment and budget segment. The exposure of the Indian customer to international service standards has made him more discerning and demanding. Today's customers expect more value added services from the service provider.

To meet the global standards and customer expectations, service providers in the hotel industry have to adopt technological developments. They also have to be customer-oriented in their approach if they have to withstand the competition in the market, which has further increased with the entry of global players. Marketers have to adopt the marketing mix elements to suit their marketing needs. For example, the product should carry more augmented services to differentiate itself from other service packages in the market.

Pricing, promotion, place, process, people and physical evidence, all have to be handled with discretion and innovativeness. The recent trends in the hotel industry owing to the technological developments and the changing demographics have had a major impact on the way hoteliers conduct their business. The Indian hotel industry has also come of age and is ready to set new standards in customer service.

Tourism Industry »