shoemaker, lewis, and yesawich: marketing leadership in hospitality and tourism, 4 th edition ©...

Shoemaker, Lewis, and Yesawich: Marketing Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4Leadership in Hospitality and Tourism, 4 thth edition edition

© 2007 Pearson Education, Upper Saddle © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. River, NJ 07458. All Rights Reserved.

Chapter EightChapter Eight

Understanding Understanding Organizational CustomersOrganizational Customers



The Generic Organizational The Generic Organizational MarketMarket

Groups may have a common Groups may have a common purpose, but meeting planners must purpose, but meeting planners must satisfy all wants and needssatisfy all wants and needs

Meeting plannersMeeting planners



Planning the EventPlanning the Event

1. Buy time1. Buy time

2. Assess the needs2. Assess the needs

3. Set measurable goals3. Set measurable goals

4. Develop a plan4. Develop a plan

5. Resolve the meeting5. Resolve the meeting

6. Execute the meeting6. Execute the meeting

7. Evaluate the results7. Evaluate the results



The Corporate Travel MarketThe Corporate Travel Market

Corporate travel Corporate travel manager manager coordinates coordinates travel/leisure for travel/leisure for employeesemployees

Third largest Third largest controllable controllable expense for U.S. expense for U.S. companiescompanies

Desirable market Desirable market for hotelsfor hotels

Must know the Must know the needs of the clientneeds of the client

Working with the Working with the corporate travel corporate travel market:market:– Know the volume to Know the volume to

better negotiate better negotiate priceprice

– Understand travel Understand travel patternspatterns

– Control costsControl costs



The Corporate Meeting MarketsThe Corporate Meeting Markets

Most common type: management Most common type: management meetings/seminarsmeetings/seminars

Planner must please the organization Planner must please the organization and the siteand the site

Hotel/site must please the clientHotel/site must please the client High expectations on both sidesHigh expectations on both sides



Conference CentersConference Centers

Carefully designed Carefully designed facilities to meet facilities to meet the needs of this the needs of this marketmarket

Designed to serve Designed to serve this specific marketthis specific market

May have complete May have complete meeting packages meeting packages (CMP)(CMP)

International Association of International Association of Conference Center Conference Center Guidelines:Guidelines:– >60% of available >60% of available

meeting space designed to meeting space designed to conferencesconferences

– Conference rooms Conference rooms separate from separate from living/leisure areasliving/leisure areas

– 24-hour access needed for 24-hour access needed for clientsclients

– >60% of total revenue >60% of total revenue must be conference must be conference relatedrelated



The Incentive MarketThe Incentive Market

Incentive travel is a management Incentive travel is a management tool where meeting, lodging, and tool where meeting, lodging, and entertainment for the group is a entertainment for the group is a reward for the organizational reward for the organizational achievement of goals and objectivesachievement of goals and objectives

Focus on an “extraordinary Focus on an “extraordinary experience”experience”

Incentive houses can provide Incentive houses can provide planning servicesplanning services



Association, Convention, and Association, Convention, and Trade Show MarketsTrade Show Markets

Overlap and have similar needsOverlap and have similar needs– Association: people meeting for social Association: people meeting for social

reasons, usually small and professionally reasons, usually small and professionally orientedoriented

– Convention: usually annual, focus on Convention: usually annual, focus on information distributioninformation distribution

– Trade shows: focus on selling products, Trade shows: focus on selling products, involves exhibitorsinvolves exhibitors



Convention Centers and Convention Centers and Convention and Visitors BureausConvention and Visitors Bureaus

Convention centers: usually in large Convention centers: usually in large cities and free-standingcities and free-standing

Convention and visitors bureaus Convention and visitors bureaus (CVBs)(CVBs)– Can be a vehicle for planning convention Can be a vehicle for planning convention

eventsevents– Non-profitNon-profit– Constituents pay annual feesConstituents pay annual fees



The Airline Crew MarketThe Airline Crew Market

House airline House airline employees and employees and crew on a crew on a contractual basiscontractual basis

May be reimbursed May be reimbursed per diemper diem

Hotels must cost Hotels must cost out revenues and out revenues and weigh advantages/ weigh advantages/ disadvantagesdisadvantages

Have specific Have specific needsneeds– Tight schedulesTight schedules– Odd hoursOdd hours– Quiet roomsQuiet rooms

Influenced by:Influenced by:– Supply/demand in Supply/demand in

hotel marketplacehotel marketplace– UnionsUnions



The SMERF and Government The SMERF and Government MarketsMarkets

SMERF: A segment SMERF: A segment of organizational of organizational customers that customers that don’t fit into other don’t fit into other categoriescategories

Both usually low Both usually low rated, but good in rated, but good in slow periodsslow periods

SMERF includes:SMERF includes:

– SocialSocial– MilitaryMilitary– EducationEducation– ReligiousReligious– Fraternal Fraternal

organizationsorganizations



The Group Tour and Travel The Group Tour and Travel MarketMarket

Group tourGroup tour

– Now is quite Now is quite heterogeneousheterogeneous

– Hotel Hotel accommodations accommodations are most importantare most important

Motorcoach TourMotorcoach Tour

– Usually mature Usually mature travelerstravelers

– 40% stay overnight40% stay overnight– Ad hoc groupsAd hoc groups– Respond to the Respond to the

needs of the group needs of the group and individualsand individuals

shoemaker, lewis, and yesawich: marketing leadership in hospitality and tourism, 4 th edition ©...

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