UNIT-III

Introduction to tourism marketing -

Tourism Marketing is a marketing strategy that uses specific marketing plan and
techniques to promote touristic products and services such as destinations, hotels and
transport services, etc.

Tourism Product -
It is the combination of accommodation, food and beverage, transportation,
entertainment, and many other goods and services that are used throughout the trip
which is marketed by a country or an institution to attract the visitors and experience the
given product.Examples- food restaurants, pubs , theaters, nature lakes parks etc

Significance of Tourism Industry -

3.1: Market Segmentation:

Significance of tourism Industry

When we discuss the importance of tourism it is often somewhat one-sided, taking into consideration

predominantly those working in the industry and their connections.

However, the tourist is just as important, as without them there would be no tourism!

Below are just a few examples of the importance of tourism to the tourist:

Enhanced quality of life

Taking a holiday can greatly benefit a person’s quality of life. While different people have very different

ideas of what makes a good holiday (there are more than 150 types of tourism after all!), a holiday does

have the potential to enhance quality of life.

Ability to broaden way of thinking

Travel is known to help broaden a person’s way of thinking. Travel introduces you to new experiences,

new cultures and new ways of life.

Educational value

The importance of tourism can be attributed to the educational value that it provides. Travellers and tourists can

learn many things while undertaking a tourist experience, from tasting authentic local dishes to learning about the

exotic animals that they may encounter.

Ability to ‘escape’

Tourism provides the opportunity for escapism. Escapism can be good for the mind. It can help

you to relax, which in turn often helps you to be more productive in the workplace and in every

day life.

This is another way that the importance of tourism is demonstrated.

Rest and relaxation

Rest and relaxation is very important. Taking time out for yourself helps you to be a happier,

healthier person.

Recent Trends in Tourism -

A trend can be defined as a generalized change in situation or behavior or a general direction in

which things are transpiring. Within tourism, a number of different developments have led to
changes in consumer behavior and business processes, meaning they are responsible for new
tourism trends emerging.

Tourism Trends “Related” With COVID

The following are some tourism trends that will have to be discussed by those interested in
tourism management in response to the global pandemic of COVID that has influenced the
tourism industry as a whole.

1. Safety & Hygiene Tourism Trends

Whether it is airlines, cruises, hotels, restaurants or bars, since the outbreak of COVID, safety
and hygiene standards have been absolutely paramount. With this in mind, there are a number
of tourism trends that are related to this, such as increased cleaning, socially distanced seating,
providing hand gel and enforcing masks in some settings.

2. Increased Emphasis on Leisure

COVID has forced countries to adopt travel restrictions, while many businesses are encouraging
employees to work from home and use video calling. As a result, business events have been
particularly badly affected and one of the resulting tourism trends has been a switch in focus
towards leisure customers.

3. Shift From International to Local

The various travel restrictions and the reluctance of many people to travel abroad has meant
many in the tourism industry are having to focus on local customers, rather than international
ones. This does not mean giving up on international travellers entirely, but it is likely to require a
change in your core marketing strategies.

4. Growth of Contactless Payments

Contactless payments have been a staple when it comes to technology in tourism for some time
now, but the emergence of options like Google Pay and Apple Pay has helped to take this to the
next level, meaning customers do not even need to carry around a debit card or credit card to
pay for meals, hotel stays, transport, and other services.

5. Voice Search & Voice Control

With home smart speakers growing in popularity, as well as mobile assistants like Siri, Google
Assistant and Bixby, more and more tourism customers are turning to voice search. For those in
the tourism industry, it is important to capture these guests by structuring website content
properly so it appears in voice search and allows for voice bookings.

6. Virtual Reality Tourism Trends

Virtual reality is another of the major tourism trends disrupting the industry and capitalizing on
the technology can give you an edge over rivals who have not yet adopted it. Through online VR
tours, customers can experience hotel interiors, restaurant interiors, outdoor tourist attractions
and more, all from their home.

Hospitality Service:

The hospitality industry is a broad group of businesses that provide services to customers. It's
focused on the satisfaction of customers and providing specific experiences for them. The
hospitality industry is unique because it relies so heavily on discretionary income and free time.
Think about your last vacation. You didn't necessarily need to go on the trip, but you did because
you had both the free time and the extra money. In this lesson, we'll look at different areas of the
hospitality industry, its strong focus on customers, and levels of service provided, as well as
economics of the industry.

TYPES:
Lodging
Food and Beverages
Recreation: Host, Guest, Theme Park, Night Club etc.
Entertainment: Cineplex, Multiplex, Theater etc.
Health and Support:
Travel: By Air, By Train, By Road
Tourism:
Art and Culture:
Events:
Types of Hotel and Accommodation:
Hotel and its Typology:
Classification on the basis of Standard and Control:

Classification on the basis of Stars:

● Five Star
● Four Star
● Three Star
● Two Star
● One Star

UNIT-IV
4.1. SEE IN PDF

BANKING AND INSURANCE SERVICES

Banking Services - acts as an intermediary between people having surplus money
and those requiring money for various business activities. It facilitates business
transactions through receipts and payments by cheques instead of currency. It provides
loans and advances to businessmen for short term and long-term purposes.
examples -.
● Cheque payments.
● Discounting on bills of exchange.
● Collecting and paying the credit instruments.
● Guarantee by banks.
● Consultancy.
● Credit cards.
● Funds remittance.

INSURANCE SERVICES - insurance Services means any renewal, discontinuance or

replacement of any insurance or reinsurance by, or handling self-insurance programs,
insurance claims or other insurance administrative functions.
Examples - When you pay premiums in exchange for a policy that pays out when you
crash your car in a car accident, this is an example of an auto insurance policy.
types of insurance services - Life Insurance.
● Motor insurance.
● Health insurance.
● Travel insurance.
● Property insurance.
● Mobile insurance.
● Cycle insurance.
● Bite-size insurance.
4.11 Personal Care Services Definition
Personal care services are hands-on services that assist a person with critical
day-to-day activities that they are unable to perform on their own.  Often referred
to as Activities of Daily Living (ADLs) or Instrumental Activities of Daily Life
(IADLs), these services will frequently be enough to allow a person to remain in
their own home, rather than transfer to assisted living or a nursing home.

Examples of Personal Care Services- Bathing

● Toileting
 ● Dressing
● Grooming
● Eating and meal prep
● Medication reminders
● Mobility

Hospital Services
Hospital Services refers to the clinical services provided by the Hospital, as well
as the operational activities that support those clinical services, which are funded
in whole or in part by the LHIN, and includes the type, volume, frequency, and
availability of Hospital Services; HSAA Indicator Technical Specifications refers to
the document titled "HSAA Indicator Technical Specifications," as amended or
replaced from time to time.
Below mentioned are some of the hospital services:-
● Emergency room services
● Short-term hospitalization
● X-ray/radiology services
● General and specialty surgical services
● Blood services
● Laboratory services
Education Services:
Education is the process by which society deliberately transmit its accumulated
knowledge, skills and value from one generation to another through recognized
Institutions.
educational services can be explained as the training or instructions given on
different subjects. Institutions giving these services on different subjects can be
training and coaching centers, colleges, schools, and universities. examples - the
offering of apprenticeship training programmes, foreign language instruction; training for
career development (provided either directly to individuals or through employers'
training programmes); exam preparation tutoring; and educational support services -
educational consultants, …
Consultancy services - Consulting Services means the provision of expertise or
strategic advice that is presented for consideration and decision-making. A
Non-consulting Service Provider is an individual or a company who contracts to provide
services, other than consulting services to another individual or business.example - a
client might ask if it would be better to buy a component or to make it in-house.
Alternatively, the consultant could be asked to advise a CEO on whether to abandon a
line of business, acquire new business interests, or redefine a marketing strategy.

IT and communication services:

Communication service - means the act of communicating using any system or the act of
transmission and receipt of information between two or more points. Each point must be
capable of both transmitting and receiving information if communication is to occur. The
term “communication service” includes, but is not limited to, the transmission and receipt
of sound, printed materials (including letters and other materials), other images perceived
visually and data encoded in computer languages. Communication service also includes
telecommunications service, ancillary service and other similar communication service.
examples -

● Correspondence:
● Telephone Services:
● Telegraph Services:
● Postal Services:
● Radio and Television:

IT services- refers to the application of business and technical expertise to enable

organizations in the creation, management and optimization of or access to
information and business processes. The IT services market can be segmented
by the type of skills that are employed to deliver the service (design, build, run).
examples - Cloud Services.
● Backup and Disaster Recovery.
● Network Security.
● Help Desk Support.
● Managed Print Services.
● Computer Training.
● IT Consulting.

UNIT 5 - 5.1: Service Decision Process:The consumer

decision-making process can seem mysterious, but all consumers go through basic
steps when making a purchase to determine what products and services will best fit
their needs.
1. Problem recognition
consumer decision-making process is recognizing the need for a service or product.
Need recognition, whether prompted internally or externally, results in the same
response: a want. Once consumers recognize a want, they need to gather
information to understand how they can fulfill that want, which leads to step
Example: Winter is coming. This particular customer has several light jackets, but
she’ll need a heavy-duty winter coat if she’s going to survive the snow and lower
temperatures.
2. Information search
When researching their options, consumers again rely on internal and external
factors, as well as past interactions with a product or brand, both positive and
negative. In the information stage, they may browse through options at a physical
location or consult online resources, such as Google or customer reviews.
Example: The customer searches “women’s winter coats” on Google to see what
options are out there. When she sees someone with a cute coat, she asks them
where they bought it and what they think of that brand.
3. Alternatives evaluation
At this point in the consumer decision-making process, prospective buyers have
developed criteria for what they want in a product. Now they weigh their
prospective choices against comparable alternatives.
Example: The customer compares a few brands that she likes. She knows that she
wants a brightly colored coat that will complement the rest of her wardrobe, and
though she would rather spend less money, she also wants to find a coat made from
sustainable materials.
4. Purchase decision
This is the moment the consumer has been waiting for: the actual purchase. Once
they have gathered all the facts, including feedback from previous customers,
consumers should arrive at a logical conclusion on the product or service to
purchase.
If you’ve done your job correctly, the consumer will recognize that your product is
the best option and decide to purchase.
 
 Example: The customer finds a pink winter coat that’s on sale for 20% off. After
confirming that the brand uses sustainable materials and asking friends for their
feedback, she orders the coat online.
5. Post-purchase evaluation
This part of the consumer decision-making process involves reflection from both
the consumer and the seller. As a seller, you should try to gauge the following:
● Did the purchase meet the need the consumer identified?
● Is the customer happy with the purchase?
● How can you continue to engage with this customer?
5.11: Service Quality Concept:
Meaning of Service Quality:
Service quality is a measure of how an organization delivers its services compared
to the expectations of its customers. Customers purchase services as a response to
specific needs. They either consciously or unconsciously have certain standards
and expectations for how a company's delivery of services fulfills those needs. A
company with high service quality offers services that match or exceed its
customers' expectations.

5 dimensions of service quality

The five dimensions of service quality are:

● Reliability: This refers to an organization's ability and consistency in

performing a certain service in a way that satisfies its customers'
needs. This process involves every step of customer interaction,
including the delivery or execution of the good or service, swift and
precise problem resolution and competitive pricing. Customers have a
certain expectation of reliability in buying a specific product, and a
company's success usually depends on its ability to meet those
expectations.
● Tangibility: This is an organization's ability to portray service quality to
its customers. There are many factors that give a company highly
tangible quality, such as the appearance of its headquarters, its
employees' attire and demeanor, its marketing materials and its
customer service department.
● Empathy: Empathy is how an organization delivers its services in a way
that makes the company seem empathetic with its customers' desires
and demands. A customer who believes a company truly cares about
their well-being is likely to be more loyal to that company.
 ● Responsiveness: This is a company's dedication and ability to provide
customers with prompt services. Responsiveness implies receiving,
assessing and swiftly replying to customer requests, feedback,
questions and issues. A company with high service quality always
responds to customer communication as soon as possible which can
often indicate the value a company places on customer satisfaction.
● Assurance: Assurance is the confidence and trust that customers have
in a certain organization. This is especially important with services that
a customer might perceive as being above their ability to understand
and properly evaluate, meaning that there has to be a certain element
of trust in the servicing organization's ability to deliver. Company
employees need to be mindful of earning the trust of their customers if
they want to retain them.

5.13: Gap Model:

A service gap is the difference between what the customers expect and what
they perceived was delivered. This is based on a Gap Model. The Gap Model
identifies six types of gaps that can occur along the way from the design to
delivery of a service.
GAP 1: Gap between Management Perception and Customer Expectation

This gap arises when the management or service provider does not correctly
analyze what the customer wants or needs. It also arises due to insufficient
communication between contact employees and managers. There is a lack of
market segmentation. This Gap occurs due to insufficient market research. For
Instance- A café owner may think that the consumer wants a better ambience in the
café, but the consumer is more concerned about the coffee and food they serve.

GAP 2: Gap between Service Quality Specification and Management

Perception 

This gap arises when the management or service provider might correctly
comprehend what the customer requires, but may not set a performance standard. It
can be due to poor service design, Inappropriate Physical evidence, Unsystematic
new service Development process.

An example would be restaurant Managers who may tell the waiters to provide the
order of the consumer quick, but do not specify “How Quick”.
GAP 3: Gap between Service Quality Specification and Service Delivery

This gap may arise in situations existing to the service personnel. It may occur due
to improper training, incapability or unwillingness to meet the set service
standards. It can be due to inappropriate evaluation and compensation systems.
Ineffective Recruitment is the main cause of this gap.

The failure to match the supply and demand can create this gap. There is also a
lack of empowerment, Perceived Control, and framework.  An example would be a
restaurant having very specific standards of the food communicated but the
restaurant staff may not be given proper instruction as to how to follow these
standards.

GAP 4: Gap between External Communication and Service Delivery

Consumer Expectations are highly influenced by the statements made by the

company representatives and advertisements. This gap arises when these assumed
expectations are not fulfilled at the time of Delivery of Service. 

An example would be a restaurant that has printed on its menu that it serves 100%
Vegetarian Food but in reality, it serves Non-Vegetarian Food as well. In this
situation, consumer expectations are not met. 

GAP 5: Gap between Experienced Service and Expected Service

This gap arises when the consumer misunderstands the service quality. For
Instance, A Restaurant Manager may keep visiting their consumer to ensure quality
check and consumer satisfaction, but the consumer may interpret this as an
indication that something is fishy or there is something wrong in the service
provided by the restaurant staff.

5.14: Service Demand:

Service Demand is the total Service Time spent by a particular Entity at a given
System Resource. As we have defined earlier, Service Time is simply the time
taken to process a given Service Request.
Strategies for matching demand capacity:

● Strategies for managing demand to match capacity:

 1. Partitioning the Demand: The demand for services is often grouped into
random arrivals and planned arrivals. For an e.g. at a doctor’s clinic the
walk-in patients arriving are more than those with appointments.
Appointment can be controlled. But walk-in demand is uncontrollable.

We often find that the inflow of patients is higher on weekdays than weekend.
Therefore, in order to level demand a partition can be created as, keep
appointments in the latter part of the week i.e. weekends and only walk-in patients
on weekdays.

2. Vary the service offering: Depending on the seasons of the year, day of the
week, or time of the day, we can change the nature of the service offering.
For an example, accounting firms focus on tax preparations and general
activities late in the year and until April when the taxes are due. During the
other times of the year they can focus on auditing and other general
consulting activities.

Care should be taken in implementing strategies to change the service offerings as

change may easily imply and require alterations in other marketing variables such
as promotion pricing and staffing in order to match the new offerings. Until and
unless these new additional marketing mix variables are altered effectively to
support the offering the strategy may not work.

1. Developing Complementary Services: Complementary services are basically

offered in order to occupy waiting customers. The Indian Restaurants have
discovered the benefits of complementary services by adding a bar to the
Restaurant. The customers can enjoy food and drinks separately as well as
together.
2. Promoting off-peak Demand: During off-seasons holiday resorts use their
premises as retreat location for business or professional groups. In the same
way in order to encourage long distance dialing the Telephone companies
offer lower rates at night.
3. Pricing Incentives: In order to smoothen the demand on the service process,
prices can be raised during peak times and lower, at non-peak times. Movies
have matinee special and hotels offers lowest rates during weekends.
4. Communicate with the Customers: Another way for shifting demand is to
communicate with the customers and let them know the peak demand period
so that they can choose to use the services at alternative times and avoids
crowding.
 5. Modify Timing and location of service delivery: Extending working hours
and working on weekends can meet the customer’s demand. Another
strategy may also work by moving the service to a new location in order to
meet the demands of the customers.
6. Advertising and Sales promotion: Advertising and sales promotion can be
used to emphasize different service benefits during different period i.e. peak
and slow period. Advertising messages can also be used to remind customers
about the peak demand times and promotional offers during the off-season.

5.15: Customer Role in Service Delivery Process: