Chapter Copyright © 2009 by Nelson Education Limited. THE TOURISM AND HOSPITALITY PRODUCT 5 5-1 Prepared by Simon Hudson, Haskayne School of Business University

Copyright © 2009 by Nelson Education Limited.

Chapter

THE TOURISM AND

HOSPITALITY PRODUCT

5

5-1

Prepared by

Simon Hudson, Haskayne School of BusinessSimon Hudson, Haskayne School of Business

University of CalgaryUniversity of Calgary

andand

Marion Joppe, University of GuelphMarion Joppe, University of Guelph


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

5The Tourism and Hospitality Product

5-2


Chapter

Tourism and hospitalityTourism and hospitalityproductsproducts• selected components or elements of

the hotel, restaurant, entertainment, and resort industries bundled together to satisfy needs and wants

The Tourism and Hospitality Product 5

5-3


Chapter

Three Levels of Product: Core

• Core productCore product

– the basic need function served by the generic product.

– Examples• airline or train = transportation• hotel = shelter and rest


5-4


Chapter

Three Levels of Product: Tangible

• Tangible productTangible product

– specific features and benefits residing in the product itself

– Examples:• styling, quality, brand name, design,

etc.


5-5


Chapter

Three Levels of Product: Augmented

• Augmented productAugmented product

– the add-ons that are extrinsic to the product itself but which may influence the decision to purchase

– features may include credit terms, after-sales guarantees, car parking etc


5-6


Chapter

Three Levels of Product: Theme Park

5

5-7

The Tourism and Hospitality Product


Chapter

Physical Evidence and the Servicescape

• ServicescapeServicescape– 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


5-8


Chapter

Elements of Physical Evidence


5-9Table

5.1


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


5-10


Chapter

Product Planning

• Product mixProduct mix – portfolio of products that an organization

offers to one market or several– five basic market/product options exist


5-11


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...


5-12


Chapter

Five Product Options 3) 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


5-13


Chapter

Feature and Benefits Analysis


5-14Table 5.2


Chapter

Product Life Cycle (PLC)

• Product life cycle analysisProduct life cycle analysis– a way to identify the life-cycle stage of a

product or service, review its past and current position, and predict its future


5-15


Chapter

Product Life Cycle


5-16


Chapter

Positioning

• The objective is to create a distinctive place in the minds of potential customers

• Four key positioning strategies


5-17


Chapter

Four Key Positioning Strategies

• Relative to target marketRelative to target market • business travellers, families with children under

ten, etc.

• By price and qualityBy price and quality• a premium product such as a room at the Four

Seasons Hotel

• Relative to a product classRelative to a product class• winter sports tourism category

• Relative to competitorsRelative to competitors• Hertz Rental Car campaign “We try harder”


5-18


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: The Case of Jamie Oliver


5-19


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


5-20


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?


5-21


Chapter

Packaging • PackagingPackaging

– 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.


5-22


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


5-23


Chapter

Product Options in New and Existing Markets


5-24


Chapter

New Service Development (NSD) Model


5-25

5.5


Chapter

Examples of New Products


5-26

• Gourmet holidays

• Mobile check in

• Smart glasses

• Flying casinos

• Branded hotel floors

• Iceberg tourism

Documents

Chapter Copyright © 2009 by Nelson Education Limited. THE TOURISM AND HOSPITALITY PRODUCT 5 5-1 Prepared by Simon Hudson, Haskayne School of Business University