T75 Tourism and Hospitality Marketing Midterm Reviewer PDF

T75 – TOURISM AND HOSPITALITY MARKETING FOCUS ▪ Overall picture to promote, ▪ Fulfill sale volume MODULE 1 - OVERVIEW OF MARKETING distrib...

T75 – TOURISM AND HOSPITALITY MARKETING FOCUS ▪ Overall picture to promote, ▪ Fulfill sale volume MODULE 1 - OVERVIEW OF MARKETING distribute, price, objectives Marketing is essential in running any business. Even though it is proven to be an important products/services; fulfill factor that determines the success of any business, it is a phenomenon that is often taken for customer wants and needs granted through the products and/or What is Marketing? services the company can Definitions of marketing offer ▪ Kotler defines 'marketing' as a process that is used to regulate which products PROCESS ▪ Analysis of market ▪ Usually, one to one or services may be of interest to customers. Marketing is also responsible for distribution channels, determining the strategy to use in sales, communications as well as business competitive products, and development. Marketing identifies unfulfilled needs and desires. services ▪ The American Marketing Association defines marketing as the process of planning ▪ Pricing strategies and executing conception, pricing, promotion, and distribution of ideas, goods, and ▪ Sales tracking services to create exchanges that satisfy individual and organizational objectives. ▪ Market share analysis ▪ Drucker had two very fundamental views of marketing: Marketing is a core ▪ budget discipline of the business (Marketing IS Business) and the primary value of corporate SCOPE ▪ market research ▪ Once a product has been culture is “customer orientation. ▪ advertising created for customer needs, The process by which companies engage customers, build strong customer relationships, ▪ sales persuade the customer to and create customer value to capture value from customers in return. ▪ public relations purchase the product to Is a social and managerial process by which individuals and groups obtain what they ▪ customer service fulfill the needs need and want through creating and exchanging products and values with others. ▪ satisfaction All marketing efforts are made by attracting customers, serving superior value, and HORIZON ▪ Long Term ▪ Short Term capturing return value for the customer in a superior routine to the competitors in the GOALS ▪ Promote the company, its ▪ Function as brand marketplace who compete with the same motive. So, understanding the customer, products, and/ or services ambassador for the the marketplace and the behavior is essential for any marketing decision and action ▪ Generate leads company Marketing vs Sales ▪ Focus is typically long term ▪ Close sales So, what is the difference between marketing and sales? In the past many using campaigns ▪ Focus is typically short companies developed an ‘offering’, made up of various products and services, which they term on achieving sales thought the customer might like and then try to ‘sell’ to them. In many cases these ‘offerings’ goals were internally focused and were designed to ensure sufficient profits for an organization. PLANS ▪ Define products and/or ▪ Create a sales action plan Marketing is different in the fact that it aims to understand the customer before selling an services ▪ Determine sales process offering to them. ▪ Identify and describe the ▪ Define team structure In the simplest terms, marketing is building awareness of your organization and target customer territories, etc. brand to potential customers, while sales are turning that viewership into profit by converting ▪ Price product and/or ▪ Determine sales goals those potential customers into actual ones. services Marketing Sales ▪ Determine how to market DEFINITION ▪ Is the systematic planning, ▪ A transaction between two products and/or services implementation, and control parties where the buyer STRATEGIES ▪ Pull ▪ push of business activities to receives goods (tangible or ▪ Online marketing ▪ Conceptual selling bring together buyers and intangible), services and ▪ Print marketing ▪ Value proposition selling sellers or/assets in exchange for ▪ Email marketing ▪ Solutions selling money ▪ Social media marketing ▪ Benefits selling APPROACH ▪ Market-oriented approach ▪ Product-oriented approach ▪ Video marketing ▪ Inbound selling ▪ Broader range of activities ▪ Make customer demand PRIORITY ▪ Shows how to reach the ▪ Selling is the ultimate to sell product/service, client match the products, the customers and build a long- result of marketing relationship company currently offers lasting relationship ▪ Determine future needs IDENTITY ▪ Targets the construction of ▪ Are the strategy of meeting and has a strategy in place the brand identity so that it needs in an opportunistic, to meet those needs for a becomes easily associated individual method, driven by long-term relationship with need fulfillment human interaction.  ▪ There is no premise of though selling and advertising are very visible aspects of marketing, they are only part of a brand identity, longevity, or larger marketing mix. The components of this marketing mix will be discussed later in the continuity. It’s simply the succeeding modules. ability to meet a need at the Five core marketing concepts right time. 1. Needs, Wants, and Demand Needs Without marketing, customers and potential customers might never be introduced to Knowing all about customer needs is the cornerstone of effective marketing. the company. Without sales, the company might not be able to maintain the necessary Knowing how to develop and promote these ‘offerings’ is essential in ensuring customer revenue stream needed to stay in the business. The need for both marketing and sales is satisfaction and business success. evident. ▪ These include basic physical needs for food, clothing, warmth, and safety; social ▪ Customer must be marketed to with the right message, and at the time and place. needs for belonging, affection, fun, and relaxation; esteem needs for prestige, If just one of these doesn’t happen, your content likely will be overlooked recognition, and fame; and individual needs for knowledge and self-expression ▪ You are competing with access to information. The web makes it easy to find ▪ These underlie wishes and expectations and are the things customers are unable whatever information you are seeking, including user ratings and product reviews. to do without. They may be in a foreign town and simply cannot do without a bed for Many customers make purchase decisions before they even talk to a supplier. That the night, a meal or a beverage. means that buyer’s journey is happening without you. Wants ▪ Businesses that tightly align their sales and marketing teams and processes grow ▪ Are the form human needs take as they are shaped by culture and individual faster. According to HubSpot, organizations with good alignment each achieve % personality revenue growth on average annually. Those that have poor alignment saw revenue ▪ Wants are how people communicate their needs. es decline by 4%. ▪ These refer to how our customers would prefer to satisfy a specific need. Wants ▪ Other benefits of aligning the two teams include better communication, improved are needs that are determined and learned by the society or culture that they live in. transparency, and an overall better collaborative environment As a culture develops, its people’s wants are expanded as people are exposed to Examples more and more possibilities for satisfying for wants. Because of the relationships they build with customer, sales professionals are in excellent ▪ Example of how human needs are shaped by culture and individual personality position to provide useful feedback and customer insights to the marketing team so that they ▪ A hungry person in Papua New Guinea needs food but wants taro, rice, yams, and can continually improve products, positioning, and understanding of the buyer’s journey. pork. A hungry person in the United States needs food but wants a hamburger, Naturally for any business to succeed, it must be customer focused and try to: French fries, and a Coke. ▪ understand what the customer wants ▪ We must also know that with limited resources we cannot buy anything we want ▪ try to develop an offering to meet these needs Points to Remember ▪ identify the best way to make people aware of the offering Human needs are the most basic concept underlying marketing ▪ motivate people to partake of the offering ▪ There are esteem needs for prestige, recognition, and fame, and individual needs for knowledge and self-expression As can be seen above it is important to note that marketing is a logical step before ▪ These needs were not invented by marketers, but they are part of the human makeup. selling. Before we look at the activities associated with marketing in a hospitality or tourism environment it is important to understand: Wants are how people communicate their needs. ▪ the concept of marketing ▪ Wants are described in terms of objectives that will satisfy needs. ▪ core marketing concept ▪ As a society evolves, the wants of its members expand. ▪ tourism marketing ▪ As people are exposed to more objectives that arouse their interest and desire, producers ▪ services marketing try to provide more want-satisfying products and services. e.g., Restaurants were once able ▪ marketing to serve generic white wine by the glass. Today, customers are more sophisticated; Concept of marketing restaurants now serve several varieties of white wine by the glass. Today’s restaurant Many people think of marketing as only selling and advertising. We are bombarded customers want and expect a good selection of wine. every day with TV commercials, catalogs, spiels from salespeople, and online pitches. Demands However, selling and advertising are only the tip of the marketing iceberg. ▪ We are constrained to choose products that will give us the most value and Marketing involves ascertaining what a customer’s needs and wants are through satisfaction for our money. The concept of demand comes into the picture supported interacting and working with the customer and providing them with a quality product/service by purchasing power, or by the ability to buy wants and become demands. that offers them value and satisfaction. As previously mentioned, all or most marketing 2. Products/Market Offerings activities today are directed toward developing relationships and customer retention. Consumer needs and wants are fulfilled through a market offering. A market offering In the past, marketing and selling activities were short-term activities designed to includes much more than just physical goods or services. Consumers decide which events to make a sale, with little attention paid to the return business of that customer. Therefore, even experience, which tourist destinations to visit, which hotels to stay in, and which restaurants on the other hand, dissatisfied customers will eventually switch to competitors and surely to patronize. To the consumer, these are all products. disparage the product to others. Similarly, customer satisfaction is also based on past buying A product is anything offered to a market for attention, acquisition, use, or experiences, the opinions of friends, and market information. consumption that might satisfy a need or want. Points to remember A product may also pertain to intangibles like a haircut, massage, or entertainment. ▪ If we meet customer expectations, they are satisfied. Marketers must be careful to set the Intangible products are known as services. Companies need to concentrate not on the right level of expectations. physical product itself, but rather on the benefits that they provide to the customer. ▪ If they set expectations too low, they may satisfy those who buy but fail to attract new Examples of product/market offerings in the tourism and hospitality industry customers. The Gamboa Rainforest Resort offers an experience of a lifetime, allowing guests to explore ▪ If they raise expectations too high, buyers will be disappointed. Panama’s rainforest and then relax at a resort enjoying a meal while watching ships traverse 4. Exchange, Transactions, and Relationships the Panama Canal. Courtesy of Bern Hotels & Resorts Marketing exists when people decide to satisfy their needs and wants through At a Ritz-Carlton resort every evening at sunset managers set up chairs on the beach, hire a beneficial exchanges. Exchange is the act of obtaining a desired object by offering something cellist to play relaxing music, and serve champagne to guests. They realize this event not only in return. Exchange is said to be the core concept of marketing. creates value for the guest, but it is also an experience that will create a lasting memory of If the exchange is the core concept of marketing, the transaction is marketing’s unit their stay of measurement. Marriott provides dolphin safaris at its Newport Beach property and a water rafting trip at its Transactions consist of the trade of values between two parties; marketing’s unit of Utah property. Marriott uses the resources of the destination to create guest experiences that measurement. Beyond simply attracting new customers and creating transactions, the goal the guest remembers for a lifetime. is to retain customers and grow their business with the company. Marketers want to build For any seller putting the best blend of offers in the market, the offering is the strong relationships by consistently delivering superior customer value challenge. Many of them make the mistake known as “marketing myopia”- paying more A transaction, exchange, or trade of values between two parties, measures the attention to specific products they offer than to the benefits and experiences produced by number of exchanges that take place. By this, marketers try to build and maintain profitable these products. exchange relations with target audiences interested in an exchange. They were hooked on their products so they focused only on existing wants and Relationships build strong long-term relationships with consumers, distributors, loosing sight of customer needs. They forget that a product is only a tool to solve a consumer dealers, and suppliers. problem “market offerings”- that get results for the sellers puts the customers’ needs, wants, 5. Market and demands firsts. Market buyers who share a particular need or want that can be satisfied by a 3. Value, Satisfaction, and Quality company’s product or services. Needs can be satisfied by a wide array of products that people can choose from. A market in marketing does not refer to a place but a group of people bound by One question we need to answer since we have limited resources, is how do we choose from common need or want. The size of the market is measured by the number of people who among the array of products offered to us to satisfy our needs and wants? The answer to this exhibit the need, have the resources to engage in an exchange, and are willing to offer these question is the third set of core marketing concepts- VALUE SATISFACTION, AND QUALITY. resources in exchange for what they want. When deciding which product to buy and where to buy it, customer value should be Marketing efforts are undertaken for containing markets to bring about profitable considered. Customer value is the difference between the benefits that the customer gains customer relationships. For creating these relationships marketers must search for buyers from owning and/or using a product and the costs of obtaining the product. Often customers and their needs design good market offerings, set prices for them, promote them and store are not very accurate at assessing value and using their own perceived value the customer and deliver them. compares the cost of the product with the benefits he gains from using the product. Activities such as consumer research, product development, communication, Another factor in deciding which product to buy is customer satisfaction. Customer distribution, pricing, and services are a must to stay ahead of competitors. satisfaction depends on the product’s perceived performance in delivering value relative to The Marketing Mix a buyer’s expectation. Success in marketing is determined by four equally important factors that are Before making any purchase, a customer would already expect this in mind and collectively known as the marketing mix. These are Product, Price, Place and Promotion. It is his/her task is to look for a product that he thinks would perform and deliver according to his said that the success of marketing depends on the success of the company’s plans as far as expectations. the marketing mix is concerned. Customer satisfaction is closely linked to quality. In recent years, many companies A high-quality top-performing product sold at a reasonable price at convenient and have adopted total quality management (TQM) programs for the continuous improvement of accessible places backed up by the intensive promotion spell MARKETING SUCCESS. If we company products, services, and marketing processes. Quality is what the customer says it put marketing success into an equation, it would be is. The decision-maker and the final evaluator of quality is the customer. Indeed, quality must begin with customer needs and end with customer satisfaction. Marketers must be careful to set the right level of expectation. Overcooked or undercooked market offerings will not help the marketer capture value in return for customer satisfaction. A satisfied customer will buy again and tell others about their good expectations,  According to the British Chartered Institute of Marketing, it is the management ____1. It is considered the world’s largest industry process responsible for the identification, anticipating, assessing and satisfying the a. real estate industry c. restaurant industry customer’s clients requirements profitable. b. recreation and leisure industry d. travel industry On the other hand, Krippendorf defines tourism marketing, as a systematic and ____2. What is the essential goal of hospitality marketing? coordinated execution of business policy by both private or public sector tourism a. customer retention c. customer satisfaction leading to profit organizations operated at the local, regional, national, or international level to achieve the b. customer satisfaction d. profit optimal satisfaction of the needs of identifiable tourist groups, and in doing so to achieve an ____3. It refers to the art and science of finding, retaining, and growing profitable customer’s appropriate return. a. hospitality marketing c. retaining strategies It can be said that tourism marketing is the process of achieving voluntary exchanges b. marketing d. strategies to increase profit between tourist and organizations – Tourists who want to buy products and services and ____4. Provision of continental breakfast by the accommodation sector to their overnight organizations which offer the products and services. guests is an EXAMPLE of Tourism marketing can also be understood as a process which begins with a. customer expectation c. customer satisfaction understanding the needs of tourists (consumers) that can be satisfied by offering a suitable b. customer retention d. customer value product or service (for example, a tour package). _____5. Seafood Resto advertises that they served the best quality seafood in the city. When An analysis of the above definitions of marketing makes it clear that tourism customers tried their list of seafood menus, they found out that it is untrue, and their marketing is not a separate discipline, but it adopts the basic principles of marketing expectations were not met which left the restaurant dissatisfied. This consequence is an which have been developed and practiced in relation to the marketing of other EXAMPLE of consumer products and services. a. customer contentment c. customer expectation The following aspects can be identified from the above definitions of tourism marketing b. customer dissatisfaction d. customer grievance ▪ Tourism marketing is a thought- provoking process _____6. It consists of actions taken to build and maintain desirable exchange relationships ▪ Identification and selection of the target market with target markets ▪ Positioning and product life cycle is important a. advertising c. promotion ▪ Future tourism marketing strategies b. marketing d. selling ▪ Innovative/proactive marketing _____7. What type of customers can be developed when they are satisfied with the delivered Functions of marketing with special reference to tourism marketing services and products of an establishment? An organization before achieving its desired goals has to go through a series of a. delighted customer c. pleased customer marketing functions. The understanding of marketing functions or marketing tasks becomes b. loyal customer d. satisfied customer very essential to understand the subject of marketing. In this section we will discuss marketing _____8. What do you call the set of benefits or values it promises to deliver to consumers to functions which can be considered as a system where interaction occurs between an satisfy their needs and also differentiated one brand from another? organization and a customer. a. customer relationship c. myopia Functions of marketing with special reference to tourism marketing as follows: b. product concept d. value proposition (a) Market Research _____9. These are shaped by culture and individual personality (b) Product Planning and Development a. demands c. wants (c) Segmentation b. needs d. viewpoint (d) Promotion _____10. Customer service and experience in the hospitality industry are considered as (e) Selling a. composite products c. inflexible products Importance of marketing in tourism industry b. inseparable products d. intangible products In any business, a solid marketing strategy is critical to building a brand, attracting new customers and maintaining loyalty. The hospitality industry is no different. Because Module 2 – UNDERSTANDING TOURISM AND SERVICE MARKETING customer loyalty is key, marketing managers and executives devote a lot of time and Definitions of Tourism Marketing resources to building brand awareness and creating ongoing, interconnected campaigns. According to Kotler, marketing is a social and managerial process by which These marketing efforts usually include both print and digital collateral that target former consumers obtain what they need and want through creating and exchanging product guests while also attracting new clientele. However, this particular industry has a unique set services and value with other. He emphasized more on wants, needs, satisfaction, demand of challenges that must be overcome and marketers. Hospitality sales are different from consumer goods sales because marketers must It is a management philosophy which, in light of tourist demand, makes it possible sell tangible as well as intangible products. In many cases this means that they are marketing through research, forecasting and selection of tourism products/services from suppliers, on services rather than goods, and success hinges on creating the right feeling in the consumer. the line with organization’s purpose and tourist satisfaction (UNWTO). For example, a resort will want to cultivate a relaxing, fun atmosphere that is recognizable to customers and inspires those same feelings in the consumer.  Because the hospitality industry is mostly made up of tourism and other experiential Attraction managers who provide maintenance of attractions, museums, galleries, services, a consistent brand identity is also very important. Marketers want to ensure that countryside sites, boat trips, and walking tours. brand recognition exists so that customers will use their services again and again. Repeat Food and beverage providers such as restaurants, pubs, and cafes customers bring in a sizeable portion of revenue, so marketing strategy must be split between Retail outlets such as specialty and independent shops, and shopping centers maintaining relationships with past customers while seeking out new ones. Transport operators such as surface and air transport providers. Marketing and sales are pivotal activities that need to be performed by any Public sector organizations such as state services for availing licenses and permissions hospitality and tourism organization. In fact, no business, regardless or industry, size or Importance of Tourism Marketing purpose will succeed without careful consideration paid to its marketing and sales strategy. As it is one of the world’s largest industries, the tourism industry is extremely ▪ It helps guarantee long-term profitability competitive. This means that businesses operating within the industry need to find ways to ▪ It influences how the organization structures itself stand out from rivals, promote themselves as being the best option for tourists, and highlight ▪ It gives the organization an edge over its competitors some of the things that make them different, or superior. Marketing is essential for achieving ▪ It plans for new products and services development this and many of the best tourism marketing tips focus on helping businesses to find a unique ▪ Staff are seen by patrons to be part of the service product selling point and promote it. Of course, it is also crucial that marketers keep up with the latest ▪ Staff can be trained to encourage the use or sale of products or services available trends, so that they can create a diverse marketing mix and use the best methods for getting and are valued for it. their message out. Whilst the concept of marketing is important in every industry, these are some unique qualities Service marketing of the tourism industry which will impact and influence a marketing approach. As defined by the American Marketing Association (AMA) as “the activities, benefits Specific marketing requirements of the tourism industry are: or satisfactions which are offered for sale are provided in connection with the sale of goods.” ▪ Shorter exposure to services For instance, when a customer pays for a night at a hotel, he is not only getting ▪ More emotional and irrational buying appeals accommodation for the night, but also a homely environment. This extra benefit given by the ▪ Greater importance on managing evidence hotel is called service marketing. ▪ Greater emphasis on stature and imagery Pure services are activities or benefits which are intangible, inseparable or ▪ More variety and types of distribution channels perishable (they do not result in ownership). However, very few services are truly pure ▪ Dependence on complementary organizations services, so products are defined to include services as well. Products and services usually ▪ Easier copying of services run on a continuum, with both types usually involving some element of the other. ▪ More emphasis on off-peak production In hospitality/tourism the product and service offering is combined to meet customer Unique relationships with tourism marketing needs and consists of the following elements: ▪ Suppliers, carriers and travel trade ▪ A tangible product ▪ Destination mix concept: attractions and events (draw visitors) facilities infrastructure and ▪ Environment transportation amenities, hospitality resources ▪ Services ▪ Visitors and local residents ▪ Managing the three preceding relationships Because goods are physical things, when you buy them you own them, and you can Since tourism directly depends on the customer’s experience, collecting and auditing see, touch and easily compare them to other similar goods. On the other hand, a service is a tourists’ experience is vital. A deep understanding of the destination, the market, and the deed performed by one party for another and the customer generally cannot keep it. A service tourists’ experience can help to target the needs, desires, and expectations of a particular is used, consumed and experienced all at once. market segment. The destinations are managed so that they provide excellent memorable experience to the Characteristics of Service Marketing tourists in terms of accommodations, facilities, amenities, activities, and food with a ▪ Intangibility continuous upgraded progress thereby increasing the tourists’ influx and generating revenue. ▪ Inseparability Since the tourists are at the destination since they arrive till they leave, the ▪ Perishability destinations contribute major portion of enhancing tourism experience. Right from hospitality ▪ Variability to a wide range of services, the provision of excellent experience to the visitors is worked out by united effort of many organizations. 1.Intangibility DMO is a collaboration of multiple private and public sector organizations working together A major characteristic of services; they cannot be seen, tasted, felt, heard, or smelled towards a common goal, to promote and market the destination, and to retain its tourism value before they are bought. all the time. Because it is not physical goods that you can see, it becomes more difficult to know The DMO partners with various other organizations as – exactly what you are buying. Hence, increased risk and uncertainty is involved in the purchase Accommodation providers who provide serviced and non-serviced accommodations such decision. Buyers often resort to word-of-mouth or use price as a guide to quality. as hotels, bed and breakfast, self-catering establishments, holiday caravans, and camping Hospitality and travel industry products are experiential only, and we do not know sites. the quality of the product until after we have experienced it.  Because guests will not know the service they will receive until after they receive it, Here are three steps hospitality firms can take to reduce variability and create service marketers should take steps to provide their prospective customers with evidence that consistency: will help them evaluate the service. This process is called providing tangible evidence. 1. Invest in good hiring and training procedures. Promotional material, employees’ appearance, and the service firm’s physical environment Recruiting the right employees and providing them with excellent training is crucial, all help tangibilize service. Hospitality companies today include virtual tours and pictures on regardless of whether employees are highly skilled professionals or low-skilled workers. their Web site. They also take advantage of Facebook, Instagram, and other social media to One of the most effective strategies available to service marketers to reduce the share photos and videos. potential variability of the product is to undertake a continuous and comprehensive staff A salesperson who is well groomed and dressed appropriately and who answers training program. questions in a prompt, professional manner can do a great deal to help the customer develop Better trained personnel exhibit six characteristics: a positive image of the hotel. Uniforms also provide tangible evidence of the experience. The ▪ Competence—they possess the required skill and knowledge uniforms worn by front-desk staff of the Hotel Nikko San Francisco are professional and ▪ Courtesy—they are friendly, respectful, and considerate provide tangible evidence that the guest is walking into a four-diamond hotel. ▪ Credibility—they are trustworthy 2.Inseparability ▪ Reliability—they perform the service consistently and accurately. A major characteristic of services; they are produced and consumed at the same ▪ Responsiveness—they respond quickly to customers’ requests and problems. time and cannot be separated from their providers. ▪ Communication—they make an effort to understand the customer and communicate Physical goods are produced, then stored, later sold, and still later consumed. In clearly. contrast, hospitality products are first sold and then produced and consumed at the same Excellent hospitality and travel companies such as Marriott and Southwest Airlines spend a time. In most hospitality services, both the service provider and the customer must be present great deal of time and effort making sure they hire the right employees. But their attention to for the transaction to occur. employees does not end there. They also invest in their employees by providing ongoing Inseparability means both the employee and the customer are often part of the training product. The food in a restaurant may be outstanding, but if the employee serving the food to 2. Standardize the service-performance process throughout the organization the customer has a poor attitude or provides inattentive service, customers will not be satisfied Diagramming the service-delivery system in a service blueprint can simultaneously with their experience. map out the service process, the points of customer contact, and the evidence of service from Goods are usually produced, stored and then consumed, whereas services are the customer’s point of view. produced and consumed in the same place at the same time. Sometimes called the ‘moment The guest’s experience includes a series of steps he or she must enact while of truth’, this moment provides management with a unique opportunity to collect direct receiving the service. Behind the scenes, the service provider must skillfully help the guest feedback from its source. move from one step to the next 3. Perishability By visually representing the service, a service blueprint can help one understand the A major characteristic of services; they cannot be stored for later use. process and see potential design flaws. Service blueprints include a line of interaction, line of A manufactured product not sold today can be stored and sold tomorrow with little visibility and line of internal support. The line of interaction represents the guest’s contact with additional cost incurred. Services cannot be produced in large, economic quantities and then employees. The line of visibility represents those areas that will be visible to the guest and transported to customers, avoiding or balancing extreme situations of peak demand or provide tangible evidence of the service. The line of internal interaction represents internal oversupply. support systems that are required to service the guest 4.Variability 3. Monitor customer satisfaction A major characteristic of services; their quality may vary greatly, depending on who Use suggestion and complaint systems, customer surveys, and comparison provides them and when, where, and how they are provided. shopping. Hospitality companies have the advantage of knowing their customers There are several causes of service variability. Services are produced and Companies also have the e-mail addresses of those who purchase from their Web consumed simultaneously, which limits quality control. Fluctuating demand makes it difficult sites. This makes it easy to send a customer satisfaction survey after a guest has stayed in a to deliver consistent products during periods of peak demand. The high degree of contact hotel or used its service. Travel intermediaries, such as Travelocity.com, contact guests to between the service provider and the guest means that product consistency depends on the see how satisfied they were with a hotel they booked on their site. service provider’s skills and performance at the time of the exchange. They realize if a customer had a bad experience they may not use their service With a manufactured product, quality control can be built into the production process. again, even though they cannot control the service and quality of the hotels they represent. Service products vary because: They try to create a consistent experience and set customer expectations by using a star Services are people based and employee performance varies rating system and publishing customer comments. Firms can also develop customer It is difficult to monitor the service product when the customer is present during information databases and systems to permit more personalized, customized service, production and/or the service is on a one-to-one basis. especially online. Variability or lack of consistency in the product is a major cause of customer The Service Culture disappointment in the hospitality industry. When variability is absent, we have consistency, One of the most important tasks of a hospitality business is to develop the service which is one of the key factors in the success of a service busines. side of the business, specifically, a strong service culture.  Service culture is a system of values and beliefs in an organization that reinforces the idea that providing the customer with quality service is the principal concern of the business. According to EHL Highlights service culture refers to a company culture that’s focused on customer service, so you could also call it customer service culture. The service culture focuses on serving and satisfying the customer. Creation of a service culture has to start with top management and flow down. An organization should hire employees with a customer service attitude, and then it works with employees to instill the concept of service. The outcome of these efforts is employees who provide service to the customers. In well-run services, employees are taught to own the customer’s request. A company with a service culture focuses its mission and processes on serving the customer first and foremost. The goal is to provide the best experience and most value for the customer, and each employee’s duties should be focused on that goal. An effective service culture motivates team members to put the customer first. Why is Service Culture important? Customer service culture is important because it’s the key factor that leads to great service. When customers experience excellent customer service, they are more likely to continue with your business and also encourage other people to try it. In other words, providing superior customer service helps your business gain repeat customers, plus a new word-of-mouth clientele. People will associate your brand with a positive experience. They will enjoy the time they spend with your brand, they will want to have the experience again and they will provide free marketing by spreading positive feedback about your business. What is the importance of service culture in the hospitality and tourism industry? This, in turn, shapes a company’s reputation, defines its position on the market and paves the way for referrals, recommendations, glowing reviews and repeat business. A service culture provides the framework for employees to ask themselves how they could better serve their guests. The Service Culture ▪ focuses on serving and satisfying the customer Key Elements of a Positive Customer Service Culture ▪ empowers employee to solve customer problems 1.Make internal customers a priority ▪ majority of many countries GDP is service based Internal customers or employees are crucial to the success of the organization. Service culture can be implemented: These people are lifeline of an organization and provide services (e.g. human resources, ▪ Through employee communication accounting, security, products, and support services) to one another that allows them to ▪ Through company policies provide the best possible service to external customers. If employees do not feel valued, they ▪ Through personal actions likely will not take ownership and responsibility for their role in making sure that external ▪ Empowers employees to solve customer problems. customers receive exemplary service that they deserve. ▪ Has to start with top management and flow down Ways to help ensure employees feel valued: ▪ Organization‟s culture must support and reward customer needs attention. ▪ Constant training on customer service skills The behaviors and beliefs characteristic of a workplace are its culture. The culture ▪ Constant training on product and service and structure of an organization affect one another. A structure appropriate to the organization ▪ Constant training on technology skills helps to develop a healthy culture. ▪ Constant training on communication skills ▪ Empowerment in decision making ▪ Competitive salary and benefits ▪ Opportunities for advancement ▪ Overall respect for what they offer and contribute to the organization 2. Treat external customers as crucial to organization success ▪ The 6th Diamond The reality of today’s globally competitive business environments is that your customer often ▪ The Employee Promise lack loyalty. The differentiating factor for successful companies is the stellar customer service The Credo that they offer their customers. Every employee must own responsibility for making every ▪ The Ritz-Carlton is a place where the genuine care and comfort of our guests is person with whom they come into contact feel “special and valued. This is especially true our highest mission. when interacting with customers via faceless technology (e.g. online chat, telephone, text or ▪ We pledge to provide the finest personal service and facilities for our guests who email) will always enjoy a warm, relaxed, yet refined ambience. 3.Provide ongoing employee training ▪ The Ritz-Carlton experience enlivens the senses, instills well-being, and fulfills Many managers views training as a luxury or expense to be cut rather than a crucial piece of even the unexpressed wishes and needs of our guests. the complex customer service puzzle. Strong customer skills training is crucial for employees at all levels of the organization. Such training should certainly include at least the following topics: ▪ Operation and functioning of any service technology used ▪ Organization history ▪ Organizational product and services familiarization ▪ Interpersonal communication skills (e.g. verbal, non verbal and listening skills) ▪ How to interact with all types of customers from differing backgrounds (e.g. gender, culture, race, religion, and various abilities) 4.Establish effective organizational communication channels ▪ Successful organizations have multiple strategies for communication up to and down the strata from executive levels to frontline employees. ▪ If everyone in the organization does not know the mission, vision and values of the organization, they certainly cannot be expected to embrace and personify those elements ▪ If you read about exemplary organization, you will often find that the people at the top of the Motto chain of command regularly solicit and listen to ideas and suggestions from employees at all At The Ritz-Carlton Hotel Company, L.L.C., "We are Ladies and Gentlemen serving levels of the organization. Ladies and Gentlemen." ▪ You will also discover that an employees knows where the organization is headed because This motto exemplifies the anticipatory service provided by all staff members. they are: Service Values: I Am Proud To Be Ritz-Carlton 1. Included in communications and newsletters 1. I build strong relationships and create Ritz-Carlton guests for life. 2. Received regular updates and attends products, services and skills training 2. I am always responsive to the expressed and unexpressed wishes and needs of 3. Participate in the periodic (.e.g quarterly) group meeting with the executives In the our guests. latter sessions, the executives typically update employees and elicit input, questions, 3. I am empowered to create unique, memorable and personal experiences for our and complaints, then have managers immediately act upon valid points identified guests. Ultimately, successful service organizations create ab environment in which 4. I understand my role in achieving the Key Success Factors, embracing providing stellar customer service is strategic initiative. Both internal and external customers Community Footprints and creating The Ritz-Carlton Mystique. are valued for what they provide to the company. They are the key elements of a positive 5. I continuously seek opportunities to innovate and improve The Ritz-Carlton customer service culture. experience. Ritz Carlton Practices for Building a World-Class Service Culture 6. I own and immediately resolve guest problems. The Ritz-Carlton Hotel Company has long demonstrated an organizational culture 7. I create a work environment of teamwork and lateral service so that the needs of based on strong customer service. It received the Malcolm Baldrige National Quality our guests and each other are met. Award twice. And it has also earned hotel industry recognition for top customer satisfaction 8. I have the opportunity to continuously learn and grow. The Ritz-Carlton culture is built on a framework of high standards that were 9. I am involved in the planning of the work that affects me. established from the company’s outset. “All of our success was built on a very simple 10. I am proud of my professional appearance, language and behavior. framework—the Gold Standards 11. I protect the privacy and security of our guests, my fellow employees and the Gold Standards are the foundation of The Ritz-Carlton Hotel Company, L.L.C. They company's confidential information and assets. encompass the values and philosophy by which we operate and include: 12. I am responsible for uncompromising levels of cleanliness and creating a safe ▪ CREDO and accidentfree environment ▪ Motto ▪ Three Steps of Services ▪ Service values  Three Steps Of Service national, or international level to meet the needs of identified tourist groups and provide a 1. A warm and sincere greeting. solid return. 2. Use the guest's name. Anticipation and fulfillment of each guest's needs. ________________ 3. _________________ 4. are vital activities for any hospitality or tourism 3. Fond farewell. Give a warm good-bye and use the guest's name. organization to carry out. The 6th Diamond ________________ 5. It is a deed performed for another party that the customer cannot The Sixth Diamond represents The Ritz-Carlton's desire to usually keep and using, consuming, and experiencing a service all happen at the same time. continuously exceed guest expectations and industry standards. The Ritz- 1. marketing 2. tourism marketing 3. marketing 4. sales 5. service Carlton believes that going beyond the fivediamond service standard requires mystique to elevate services to even higher experience levels. Only by satisfying Module 3 – MARKETING ENVIRONMENT AND SWOT ANALYSIS WHAT IS MARKETING functional needs and through emotional engagement first, however, can ENVIRONMENT? opportunities to "build strong relationships and create Ritz-Carlton guests for life" Kotler defines marketing environment consists of outside actors and forces that arise. affect a company’s ability to build and maintain successful relationships with its target The Sixth Diamond reminds Ladies and Gentlemen that complacency customers. The marketing environment offers both opportunities and threats. Successful has no place in their hotels: they must strive to go above and beyond and to companies know the vital importance of constantly watching and adapting to the changing push their limits in order to augment the brand's global success. The environment. The operation of a company is strongly intertwined to its environment. An employment and encouragement of wow stories in setting a tone for the environment consists of forces that influence a company's performance. organization's performance standards reinforces the creation of mystique in For a business to succeed, it is fundamental to have a comprehensive understanding experience personalization of the needs of the customers. As a result, businesses should keep a keen eye on their marketing environment. As it is surrounded by a variety of unforeseen forces, the marketing environment is constantly changing. Businesses must analyze the conditions in which they operate in addition to conducting a comprehensive review of the actual marketing environment. The organizational performance of tourism enterprises may be influenced by regulatory and competitive circumstances, as well as other market forces such as political, economic, social, and technological influences. As a result, the focus of this module will be on some these concerns. Economic considerations, such as strong exchange rate changes, the price of oil and other commodities, and other factors, have a significant impact on the tourism business. Furthermore, sociological variables such as worldwide concerns about safety and security may have an impact on visitor behavior. Nonetheless, the regulatory environments will have an impact on the tourism and airline industries (Belobaba, Odoni & Barnhart, 2015). Deregulation and liberalization of the airline industry, for example, have created numerous opportunities for many airlines, including low-cost carriers. Simultaneously, it has put in threat inefficient airlines that were previously protected by regulation. Without a doubt, competition is a key element of the marketing environment that should not be disregarded. Suppliers of substitute products are among the company's The Employee Promise competitors. They may be new entrants to the market. On the other hand, they may include ▪ At The Ritz-Carlton, our Ladies and Gentlemen are the most important resource in customers and suppliers who were business stakeholders. our service commitment to our guests. As a result, tourism marketers should be familiar with various business models, as ▪ By applying the principles of trust, honesty, respect, integrity and commitment, we competition can take many various forms, such as differentiated, full-service enterprises or nurture and maximize talent to the benefit of each individual and the company. lowcost service providers. As a result, companies should have effective systems in place to ▪ The Ritz-Carlton fosters a work environment where diversity is valued, quality of keep abreast of the current marketing trends. life is enhanced, individual aspirations are fulfilled, and The Ritz-Carlton Mystique is ENVIRONMENTAL SCANNING strengthened. Environmental scanning is the process of collecting information on the numerous _________________1.It is a social and management process in which customers have what elements that influence the marketing environment. This entails observing and analyzing they want and need by creating and exchanging products, services, and value with other primary and secondary sources of data, such as web resources from business, trade, media, customers. and government agencies, among others. _________________ 2. It is a systematic and coordinated execution of business policy by The process of evaluating and analyzing the information gathered is known as both commercial and public sector tourism organizations operating at the local, regional, environmental analysis. Marketing managers or market research experts who have been commissioned to conduct market research may undertake periodic analysis of the gathered Important actors in a company’s micro-environment information (as explained in the previous chapter). Marketing executives can use data 1. The Company analysis to try and identify existing environmental patterns and even forecast future trends. To achieve the task of the marketing, the marketing department needs the co- Kotler, Armstrong, Frank & Bunn, 1990 as cited in Camilleri, M.A. (2018), affirms that operation of various other company departments. The finance department is concerned with marketing managers should be able to identify potential threats and opportunities related with finding and using funds to carry out the marketing plan. The R&D department designs safe environmental fluctuations by evaluating trends and patterns. When considering the and attractive products according to the market requirements. ‘marketing environment,' we must take into account both the external (i.e. macro- The purchasing department buys the appropriate materials. The manufacturing environment) and the internal (i.e. micro-environment) factors. department manufactures the goods according to the market requirements. The accounting MARKETING ENVIRONMENT department has to maintain accounts of all the events in the business. Housekeeping is The marketing environment includes the actors and forces outside marketing that responsible for delivering clean rooms sold by the sales department. Top management sets affect marketing management’s ability to build and maintain successful relationships with the company mission, broad strategies, objectives, and policies. Marketing decisions must be customer (Kotler, 2017). It surrounds the organization and has an impact on it. Marketers will made within the strategies plans made by top management. Under the marketing concept, all build both internal and external relationships. Marketer ails to deliver value to satisfied managers, supervisor, and employees should work in harmony to provide superior customer customers, so we need to assess and evaluate our internal and external environment. value and satisfaction. Therefore, all these departments within the company exert a very It is made up of up of a microenvironment and a macroenvironment. The strong influence on the company and its marketing. microenvironment (internal) consists of factors are within the control of an organization that It is important to maintain a close relationship with employees of the company even affect its ability to serve its customers, the company itself, marketing channel firms, customer if they participate in other departments. One goal is that all employees in the different markets, and a broad range of publics. While macroenvironment (external) consists of departments understand the mission and overall objectives of the company. Top larger societal forces that affect the entire microenvironment, that is, demographic, economic, management, finance, research and development, purchasing, operations, and accounting natural, technological, political, competitor, and cultural forces and do not fall within the control should all be in synchronization of the organization (Kotler, 2017). 2. Suppliers To keep a healthy and strong relationship with suppliers is very important, as they Microenvironment provide the necessary resources. The internal environment is another term for the microenvironment. The Suppliers determine the quality of the products a company makes through the supply microenvironment consists of forces that are close to the companies and have an impact on of goods. Suppliers must supply quality goods, on time, at reasonable prices and on favorable their ability to serve customers. The actors in the microenvironment include the company, terms and conditions. Moreover, the cost of the products of the company largely depends on suppliers, market intermediaries, customers, and public (Kotler, 2017). the cost at which the raw materials are supplied to the company. Therefore, suppliers exert a very strong influence on the company and its marketing. 3. Marketing Intermediaries Marketing intermediaries help the company promote, sell, and distribute its goods to the final buyers. Intermediaries are business firms that help hospitality companies find customers or make sales. They include travel agents, wholesale tour operators, hotel representatives, and online travel agencies (OTAs), such as Expedia, Travelocity, and Orbitz. The OTAs bundle airfare with hotel rooms, creating value for the customer. It includes middlemen, physical distribution firms, marketing service agencies, and financial intermediaries. Today’s marketers recognize the importance of working with their intermediaries as partners rather than simply as channels through which they sell their 5. Competitors products. Those who serve a target market with similar products and services against whom Marketing services agencies are suppliers that help the firm formulate and a company must gain strategic advantage. implement its marketing strategy and tactics. These suppliers include public relations The competitive environment consists of certain basic things which every marketing agencies, advertising agencies, and direct mail houses. They work directly with the company’s manager has to take note of. Philip Kotler is of the opinion that “the best way for a company marketing program and also include marketing research firms, media firms, and marketing to grasp the full range of its competition is to take the viewpoint of a buyer. “What does a consulting firms, which help companies target and promote their products to the right markets. buyer think that eventually leads to purchasing something?” Kotler has illustrated by taking a These firms vary in creativity, quality, service, and price. The company should regularly review person who has been working hard and needs a break. He may ask himself as to what ought performance and replace service firms that no longer perform well for attaining this break after a sustained hard work Financial intermediaries include banks, credit companies, insurance companies, Competitor analysis is an important aspect of developing effective marketing and other firms that help hospitality companies finance their transactions or insure the risks strategies associated with the buying and selling of goods and services. Rising insurance costs, in Example particular liquor liability insurance, have forced some hospitality firms out of business. A large restaurant chain can use its buying power to purchase national advertising, spreading Because rising credit costs, limited credit, or both can seriously affect a company’s marketing the cost among hundreds or thousands of operations. But small individually owned performance, the company has to develop strong relationships with important financial restaurants can adjust quickly to local trends and can offer more menu variety because they institutions. do not have to worry about standardizing menu items across thousands of restaurants. Disintermediation. The elimination of intermediaries. The Internet has created both Every company faces the following four levels of competitors disintermediation and pricing transparency. Hotels have created their own Internet reservation 1.A company can view its competitors as companies that offer similar product and systems, referred to as Brand.com (where the name of the company replaces “Brand,” e.g., services to the same customer with the same prices. Hyatt.com). The brands are now less dependent on intermediaries, but still use them to 2. A company can see its competitors as all companies making the same product or provide extra demand. The demand cannot be filled through direct channels. Small hotels can class of products now distribute their products worldwide over the Internet. 3. A company can see its competitors more broadly as all companies supplying the 4. Customer same service. It is the most important factor. It is also important to create a strong relationship with 4. A company can see its competitors even more broadly as all competitors that the customer to understand and address their needs. compete for the same consumer dollars The ultimate success of marketing depends on the customers. Customers include 6. Public individuals, firms, governments, other companies, importers etc. The marketing’s aim should Any group that has an actual or potential interest in or impact on an organization’s be to find customers, develop customers, serve them well and retain them. Customers are ability to achieve its objectives. the ones who sustain the company. If customers do not buy the products of a company, there Types of publics is no way any company can survive, let alone succeed. ▪ Financial publics. These influence the company’s ability to obtain funds. Banks, Therefore, customers exert a very strong influence on the company and its investment houses, and stockholders are the major financial publics. marketing. ▪ Media publics. These carry news, features, and editorial opinions. They include The hospitality company needs to study five types of general customer newspapers, magazines, and radio and television stations. markets ▪ Government publics. Management must take government developments into 1.Consumer markets consist of individuals and households that purchase account. Marketers often consult the company’s lawyers on issues of product safety, hospitality services for leisure activities, medical needs, and gatherings such as truth in advertising, and other matters. reunions, weddings, or funerals ▪ Citizen-action publics. A company’s marketing decisions may be questioned by 2.Business markets buy hospitality services to facilitate their business. This can be consumer organizations, environmental groups, minority groups, and others. Its individual rooms for travelers representing the company or for group meetings the public relations department can help it stay in touch with consumer and citizen company or organization may conduct. groups 3.Companies have sales meetings, and associations have annual conventions. ▪ Local publics. These include neighborhood residents and community 4.Resellers purchase a product and then resell it. For example, a tour operator may organizations. Large companies usually appoint a community relations officer to deal purchase airline seats, hotel rooms, ground transportation, and restaurant meals to with the community, attend meetings, answer questions, and contribute to package a tour, which will be resold to the consumer market. worthwhile causes. 5.Government markets are made up of government agencies that purchase ▪ General publics. A company needs to be concerned about the general public’s hospitality services for individual travelers and meetings. They often have room rates attitude toward its products and activities. The public’s image of the company affects that are limited by government per diem rates. its buying. 6.International markets consist of those buyers in other countries, including ▪ Internal publics. These include workers, managers, volunteers, and the board of consumers, businesses, resellers, and governments. Each market type has special directors. Large companies use newsletters and other means to inform and motivate characteristics that call for careful study by the seller.  their internal publics. When employees feel good about their company, this positive attitude spills over to better customer service. Macro Environment The microenvironment is also called external environment. It includes forces that are beyond company’s control. The macroenvironment includes economic, sociocultural, politicallegal, technological, and natural environment. 1. Demographic Demography is the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics. The demographic environment is of major interest to marketers because it Marketers must pay close attention to major trends and consumer-spending patterns involves people, and people make up markets. The world population is growing at an both across and within their world markets. explosive rate. Marketing plans and programs are also influenced by many other economic Changes in the world demographic environment have major implications for parameters such as interest rates, money supply, price level, consumer credit, etc. Higher business. interest rate adversely influences real estate market and markets of consumer durables sold In China, Starbucks is a destination with about 90 percent of the consumption on on installment basis. Exchange fluctuations, currency devaluation, changes in political and premise. Young people flock to Starbucks to hang out with friends. Starbucks knows that legal set-up influence international marketing. China will become its largest market and is preparing for that day. In 2011 they established a A high rate of inflation affects the economic structure of a country. Inflation coupled coffee farm and processing facilities in China’s southern Yunnan province with scarcity conditions can radically change consumer buying habits. Starbucks is targeting China’s millennials, positioning itself as a new kind of informal but Many purchases may be postponed or even eliminated. Higher petrol prices created indulgent meeting place a trend in favor of small cars and public transport. Inflationary conditions adversely affect the Marketers keep close track of demographic trends and developments in their market of consumer durables. Economic forces can have positive or negative effects upon markets, both at home and abroad. They track changing age and family structures, the promotion efforts of business units. Trade and business booms and slumps constitute the geographic population shifts, educational characteristics, and population diversity. economic aspects of marketing environment. Changing Age Structure of the Population 3. Natural Environment The baby boomers, Generation X, and millennials have a strong impact on today’s The natural environment involves the natural resources that are needed as inputs marketing strategies by marketers or that are affected by marketing activities. Environmental concerns have grown 2. Economic Environment steadily during the past three decades. In many cities around the world, air and water pollution The economic environment consists of factors that affect consumer purchasing have reached dangerous levels power and spending patterns. Markets require buying power as well as people. Purchasing Marketers should be aware of several trends in the natural environment. The first power depends on current income, price, saving, and credit; marketers must be aware of involves growing shortages of raw materials including air and water. major economic trends in income and changing consumer spending patterns. Renewable resources, such as forests and food, also must be used wisely. Nonrenewable resources, such as oil, coal, and various minerals, pose a serious problem. Shortages increase construction costs of new hotels, restaurants, and tourist attractions. A second environmental trend is increased pollution. Consider the disposal of garbage and sewage by resorts. In destinations where this is not managed, the groundwater has been polluted, damaging the water supply. Garbage can be seen on the beaches and back bays of some destinations. Hospitality companies must be good corporate citizens and embrace corporate responsibility.  The natural environment consists of many amenities that attract tourists, such as online sales features e.g. direct booking via their official website or invest in online travel forests, clean beaches, pristine streams, wildlife, and clean air. Anyone involved in tourism agencies i.e. booking.com. has an obligation to protect the environment and develop sustainable tourism. The concern 5. Political Environment for sustainability is increasing and has led to publications such as greenlodgingnews.com and Marketing decisions are strongly affected by developments in the political organizations such as Green Restaurant Association. environment. This environment consists of laws, government agencies, and pressure groups This includes implementing best practices to minimize negative impacts on sea that influence and limit the activities of various organizations and individuals in society turtles. Specific conservation actions include ensuring beachfront lighting that does not cause Some current political trends and their implications for marketing disorientation of hatchlings and conducting active sea turtle patrols by staff help to protect management nests, hatchlings, and adult turtles from poaching and other key threats. In addition, guest 1. Increased Legislation and Regulation Affecting Business education is prioritized to highlight actions tourists can take to keep sea turtles safe such as As products become more complex, public concern about their safety keeping a respectful distance from sea turtles in the water, never feeding them, and increases. Governmental agencies have become involved in the investigation and minimizing litter and marine pollution during their stay. The properties have eliminated regulation of everything from fire codes to food-handling practices. disposable plastic products and host beach cleanup efforts to help address the global issue Employment and employee practices fall under government regulation, as of marine plastic pollution. do sales of alcohol, which vary from state to state and sometimes from precinct to A third trend is increased government intervention in natural resource precinct in the same county. management. The governments of different countries vary in their concern and efforts to Politicians also see travelers as good sources of revenue because promote a clean environment. nonresidents pay taxes on hotel rooms, rental cars, and many other purchases but 4. Technological Environment cannot vote against them. The most dramatic force shaping our destiny is technology, which has given us Hotel taxes are supposed to be used to support tourism; however, the wireless access to the Internet. spending of this money has sometimes been used for questionable purchases, such Technology has affected the hospitality industry in many ways. For example, Intelity as statues for suburban parks. The hospitality industry must make sure that taxes has produced a product called ICE (Interactive Customer Experience) that can be accessed designed to promote tourism are used effectively. from a number of Web-enabled platforms, including smartphones and tablets. Guest services Government regulation also aims to protect society’s interests. Profitable from the hotel such as room service, valet parking, dining room reservations, and spa services business activity does not always improve the quality of life. Thus, regulations are can be accessed from the tablet. External reservations at theatres, restaurants, golf courses, passed to discourage smoking, littering, polluting, over-congestion of facilities, and and airlines can also be accessed. To prevent theft, the equipment has tracking devices. others in the name of protecting society’s interests. Regulation aims to make firms There are predictions that the front desk will be no longer necessary as guests check-in using responsible for the social as well as private costs of their activities. Government their smartphone. regulation and enforcement are likely to increase. Business executives must know Marketers must understand and anticipate changes in the technological the major laws protecting competition, consumers, and society when planning their environment. Because the guest is involved in the service delivery process, technology products and marketing programs. changes often mean we need to train the guest in how to use the new technology 2. Changing Government Agency Enforcement The Hen-na Hotel in Japan has developed robots that will man the front. desk. By reducing These agencies can have a major impact on a company’s marketing the cost of labor, the hotel intends to be the low-price leader in the area. The hotel is using performance. Government agencies have discretion in enforcing the laws, and from facial recognition as a way for guests to access their rooms. The application of technology is