Promoting to Target Promoting to Target MarketsMarkets

Chapter 6Chapter 6

Unit Essential Question

What are the three main What are the three main hospitality markets and what hospitality markets and what promotional activities are promotional activities are most effective to reach them?most effective to reach them?

Essential Question 1

What role does demographics What role does demographics play in hospitality marketing?play in hospitality marketing?

Customer DemographicCustomer Demographic

Meeting the Needs of a Target MarketMeeting the Needs of a Target Market– MarketMarket:: A group of all potential customers who

share common needs and wants, and who have the ability and willingness to buy the product.

– Target Market: The specific group of people the business wants to reach.

– Niche Market: A small, uniquely defined group of people.

Customer DemographicCustomer Demographic

– Market Segmentation: Dividing the total market into smaller groups of people who share specific needs and characteristics.

– Elements of Market SegmentationElements of Market Segmentation Geographics: Segmentation of the market based on

where people live.

Customer DemographicCustomer Demographic Demographics: Statistics that describe a population

in terms of personal characteristics. These include age, gender, income, ethnic background, education, etc.

Psychographics: Involves the study of customers based on lifestyle, and the attitudes and values that shape it.

Customer DemographicCustomer Demographic Product Benefits: Built in features of products in

response to consumer needs and wants. Product Usage: Involves the frequency of use of a

product. This information allows marketers to promote preferred goods and services.

A Closer Look at DemographicsA Closer Look at Demographics– Astute marketers pay attention to demographics.– Special attention must be given to female business

travelers, senior citizens, and families who travel short distances to sporting events.

Customer DemographicCustomer Demographic

– Marketing to SeniorsMarketing to Seniors The hospitality industry must carefully consider price

and security. Seniors enjoy traveling with others in their age group. The current senior population is disproportionately

women to men; nearly 4 to 1.

Customer DemographicCustomer Demographic

– Marketing to Baby BoomersMarketing to Baby Boomers Baby Boomers present a great opportunity to the

hospitality industry. Unlike current senior citizens who grew up being

thrifty during the depression years, Baby Boomers freely use credit and are more likely to spend money on a wide array of hospitality venues.

Customer DemographicCustomer Demographic

– Self-Perception and RealitySelf-Perception and Reality Most people think of themselves as being younger

than their real age. Advertisers will use pictures of younger people to

advertise to an older group.

– Interactive MarketingInteractive Marketing Interactive Marketing: Advertisements on a hotel

guest’s television. This sophisticated means of advertising can track

guest interests and make the ordering process easier for customers.

Essential Question 2

What do business What do business travelers want?travelers want?

The Business TravelerThe Business Traveler

The Business TravelerThe Business Traveler– Business TravelersBusiness Travelers:: Potential customers who are on

the go for meetings, conferences, and trade shows within the United States and throughout the world.

– Teleconferencing and videoconferencing was predicted to reduce business travel however, business travel has not decreased.

– The number of business travelers is at an all time high.

The Business TravelerThe Business Traveler

– What Business Travelers WantWhat Business Travelers Want A place to sleep An office A work room A place to entertain

The Business TravelerThe Business Traveler

Trends Worth Watching– The average business traveler takes ten trips per year.

– Only 4% of business travelers order an in-room movie.

– Importance of High TechnologyImportance of High Technology Business travelers are addicted to technology. Mobile cell phones and laptop computers are common devices

toted by business travelers. Hotel rooms must be more accessible to technology needs.

The Business TravelerThe Business Traveler

– Health trendsHealth trends 50% of travelers over 35 take daily vitamins compared to

40% under 35. 28% of young business travelers carry medical information

on business trips compared to 38% of veteran business travelers.

25% of the younger generation use the gym versus 14% of the older travelers.

Hotels must continue to provide state-of-the-art equipment in their spas and recreational facilities to meet the demand of the new generation.

The Business TravelerThe Business Traveler

– Dining stylesDining styles 30% of men and 22% of women enjoy dinning out. 13% of men and 8% of women will likely have an

alcoholic drink. 23% of men and 18% of women will have a dessert. 31% of new business travelers will use in-room coffee

makers compared to 49% of veteran business travelers. Younger travelers are less likely to eat alone. 17% of young travelers will unlock the mini-bar as

opposed to 9% of experienced travelers.

The Business TravelerThe Business Traveler

– More female executivesMore female executives Women want responsive service and respect from

hotels equal to that given to their male counterparts. Women tend to research an area more than men before

traveling to a business location. 33% of women will take a friend or significant other

with them on a business trip and plan leisure time compared to 13% of men.

Essential Question 3

What does the leisure What does the leisure traveler want?traveler want?

The Leisure TravelerThe Leisure Traveler

Leisure TravelerLeisure Traveler– Leisure TravelLeisure Travel:: Travel taken solely for vacation

or pleasure.– Leisure travel is a precious commodity for most

individual families.– It is important for the leisure activity to provide

the most satisfying experience possible.

The Leisure TravelerThe Leisure Traveler

– Adventure TravelAdventure Travel Hard Adventure TravelHard Adventure Travel

– Requires physical strength and endurance.

– Examples include: whitewater rafting, snorkeling or scuba diving, off-road biking, etc.

Soft Adventure TravelSoft Adventure Travel– Requires less rigorous exertion.

– A growing senior population is demanding an increasing amount of soft adventure travel.

– Examples include: Cruise ship tour of Alaska, Bird-watching expedition on the south coast of Texas.

The Leisure TravelerThe Leisure Traveler

Leisure Travelers’ PreferencesLeisure Travelers’ Preferences– Leisure travelers have different preferences than

business travelers.– People on vacation want to enjoy cable television

and an easy to read newspaper like USA Today.

The Leisure TravelerThe Leisure Traveler

– The Impact of Senior TravelersThe Impact of Senior Travelers Half of the Baby-Boomer generation will live to be

100. In 1900, only about a quarter of the population lived

past age 65. Today, 80% does. At the beginning of the 20th century, the average life

expectancy was 42 years. Today, it is 84 years. People age 85 and older are the fastest growing

segment of the population.

The Leisure TravelerThe Leisure Traveler

– Alternative Leisure LodgingAlternative Leisure Lodging TimesharesTimeshares

– These properties are a tax deductible investment for some individuals.

– This type of investment allows individuals families to vacation in an apartment or condominium.

Regardless of lodging type, the key to success for the hospitality industry is occupancy.

Airline seats and hotel rooms are perishable commodities.

Competition has made it more difficult to sell out.

The Leisure TravelerThe Leisure Traveler

– Incremental RevenueIncremental Revenue Incremental Sales: Sales to new customers outside

the normal distribution channel. The internet has helped the hospitality industry sell

additional rooms and airline tickets. Priceline and Cheap Tickets allow consumers to

purchase their hospitality needs over the internet.

Essential Question 4

Why is international Why is international travel important and what travel important and what special considerations special considerations must be made for the must be made for the international traveler?international traveler?

The International TravelerThe International TravelerThe Growth of International TravelThe Growth of International Travel

– The United States is the top destination for The United States is the top destination for international travelers.international travelers.

– Welcome to Our CountryWelcome to Our Country International consumers are not afraid of high prices. International customers are very loyal when they

receive good accommodations and service. International companies do not always understand how

U.S. businesses operate. The idea of going after the highest bidder instead of a long-term relationship is a turn-off for some international customers.

Long-term relationships take time and nurturing.

The International TravelerThe International Traveler– Making Guests ComfortableMaking Guests Comfortable

Hotels interested in the international traveler will hire people who can speak more than one language.

Hotels that want international business will have flexible arrival and departure times.

– Most international flights leave the U.S. in the evening so check-out should be extended to 4 or 5 with out an extra charge.

– Most flights from Europe arrive between 6 and 7 AM so early check-in should be available to help adjust from Jet Lag: A feeling of fatigue and disorientation caused by the disruption of the body’s normal rhythms.

The International TravelerThe International Traveler– What’s for Dinner?What’s for Dinner?

International travelers appreciate touches that make them feel at home.

Understanding cultures and their culinary peculiarities is a must for hotels to be successful in the international traveler market.

Some international travelers smoke more frequently than others and do not expect restrictions on their practice. Smart managers of hotels and restaurants make appropriate adjustments for groups from a specific area in the world.

The International TravelerThe International TravelerBon VoyageBon Voyage

– International travel requires appropriate research.International travel requires appropriate research.– Selecting A Travel AgentSelecting A Travel Agent

Travel agents are still widely used for international travel.

Full-service travel agencies: Full-service travel agencies: – Provide tailored service and personal attention to their

customers.

– They earn commissions on lodging, airline tickets, and car rentals.

– Using a travel agent does not normally increase the price since agents receive a commission.

The International TravelerThe International Traveler Specialist or destination agents: Specialist or destination agents:

– Focus on special travel niches.

– Examples include: Tours of Italy, Skiing in Switzerland, Cruses, Dude Ranches, etc.

Rebaters:Rebaters:– They give part of their commission back to travelers in order

to provide the lowest prices.

– They deal with people who know exactly where and how they are going to travel.

Fee-based agents:Fee-based agents:– They charge clients a fee for their services.

– They do not receive commissions from service providers.

The International TravelerThe International Traveler– Insurance for International TravelInsurance for International Travel

Insurance for international travel is a good idea. If the airline goes bankrupt, the political environment

becomes to unsafe, or a trip is cancelled, the insurance covers expenditures that otherwise would be lost.

Travelers buy flight insurance to cover possible death and injury due to a crash, collision, fire, or other catastrophe.

The International TravelerThe International Traveler– Working With International HotelsWorking With International Hotels

Concierges: Provides personalized service to hotel guests.

They are a good source of information and can arrange any assistance that the guest may require.