The Tourism and Hospitality Product

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Chapter

THE TOURISM

ANDHOSPITALITY

PRODUCT

5

Prepared by

Simon Hudson, Haskayne School of Business

University of Calgary

5-1



Chapter

Topics

• Components of the tourism and

hospitality product

• Various levels of products or services

• Tools used in product planning

• Packaging and branding• New product development in the

tourism and hospitality sector

5 The Tourism and Hospitality Product

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Chapter

Three Levels of Product: Core

• Core product

– the basic need function served bythe generic product.

– Examples

• airline or train = transportation• hotel = shelter and rest.


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Chapter

Three Levels of Product: Tangible

• Tang ible product

– specific features and benefitsresiding in the product itself

– Examples:

• styling, quality, brand name, design,etc.


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Chapter

Three Levels of Product:Augmented

• Augmented p roduct

– the add-ons that are extrinsic to theproduct itself but which may

influence the decision to purchase

– features may include credit terms,

after-sales guarantees, car parking

etc


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Chapter

Three Levels of Product

5

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The Tourism and Hospitality Product



Chapter

Elements of Physical Evidence


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Chapter

Physical Evidence and theServicescape

• Servicescape

– the environment in which the service is

delivered and in which the firm and

customer interact, and any tangible

components that facilitate performance or

communication of the service


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Chapter

Response to Servicescapes

• Employees and customers in service

firms respond to dimensions of their

physical surrounding in three ways:

– cognitively

– emotionally

– physiologically

• Those responses influence their

behaviours in the environment


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Chapter

Product Planning

• Product mix

– portfolio of products that an organization

offers to one market or several

– five basic market/product options exist


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Chapter

Five Product Options

1) Several markets/multi-product mixes for

each

Example:

– mass tour operators that offer a wide range of

multi-destination packages to a variety of market

segments

2) Several markets/single product for each

Example:

– airlines with a product for business and economy

class travellers continued...


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Chapter

Five Product Options3) Several markets/single product for all

Example:

- national tourist organization promoting a country

4) Single market/multi-product mix

Example:

- specialist tour operator with a range of cultural

tours aimed at a wealthy, educated market

5) Single market/single product

Example:

- a heliskiing operator targeting the very rich


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Chapter

Feature and Benefits Analysis


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Chapter

Product Life Cycle


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Chapter

Positioning

• The objective is to create a distinctive

place in the minds of potential

customers

• Four key positioning strategies


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Chapter

Four Key Positioning Strategies

• Relative to target market

• business travellers, families with children

under ten, etc.

• By price and quality

• a premium product such as a room at the Four

Seasons Hotel

• Relative to a product class • winter sports tourism category

• Relative to competitors

• Hertz Rental Car campaign “We try harder”


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Chapter

Branding

• A brand offers the consumer relevant

added value, a superior proposition

that is distinctive from competitors and

imparts meaning above and beyond

the functional aspects

• Snapshot: Chefs as Brands


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Chapter

Advantages of Branding

• helps reduce medium and long-term vulnerability to

the unforeseen external events

• reduces risk for the consumer at the point of purchase

• facilitates accurate marketing segmentation by

attracting some and repelling other consumer

segments• provides the focus for the integration of stakeholder

effort

• strategic weapon for long-range planning in tourism


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Chapter

Brandicide

• It has been suggested that companies

can commit „brandicide‟ by stretching a

well-known brand too far

• Think of a brand that has done this.

– What was it that killed it off?

– Take a tourism brand you are familiar with

and keep stretching it.

• How far can you go?


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Chapter

Packaging

• Packaging

– the process of combining two or more

related and complementary offerings into

a single-price offering

– customer benefits include:• ability to budget for trips

• increased convenience• greater economy

• opportunity to experience previously unfamiliar

activities and attractions

• opportunity to design components of a package for

specialized interests.


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Chapter

Packaging and Tourism

• For tourism operations, packages are

attractive for the following reasons:

– improve profitability

– smooth business patterns

– allow joint marketing opportunities

– effective tool to tailor tourism products for

specific target markets


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Chapter

Product Options in New and

Existing Markets


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Chapter

New Service Development (NSD)

Model


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Chapter

Examples of New Products


5-24

• Gourmet holidays

• Mobile check in

• Smart glasses

• Flying casinos

• Branded hotel floors• Iceberg tourism

Documents

The Tourism and Hospitality Product