PRODUCTS/SERVICES &PRICING

THE PRODUCT/SERVICE MIX

The products of the hospitality and travel industry are many and varied. Each organization within the industry has its own product/service mix.

1. Staff Behavior, appearance, and uniforms

2. Building exteriors

3. Equipment

4. Furniture and fixtures

5. Signage

6. Communications with customers and other publics.

THE PRODUCT/SERVICE MIX

1. Staff Behavior, Appearance, and Uniforms. Here, it is sufficient to mention that the physical aspects of staff appearance must be carefully considered in the marketing plan.

2. Building Exteriors. Many hospitality and travel organizations serve their guests in one or more buildings. The overall physical condition and cleanliness of these structures greatly influence the customer’s image of the organization and their own satisfaction.

THE PRODUCT/SERVICE MIX

3. Equipment. Customers evaluate several types of hospitality and travel businesses partly on the upkeep and cleanliness of their equipment. Airline, cruise line, car rental, bus, train, limousine/taxi, and attraction companies are a few examples of the relevancy of this element.

4. Furniture and Fixtures. Many customers are sensitive to the quality of the furniture and fixtures within buildings and transportation equipment. Many hospitality and travel companies back up their high-quality images with high-quality furniture and fixtures.

THE PRODUCT/SERVICE MIX

5. Signage. This is another part of the product/service mix that is often forgotten. Most organizations have a variety of signs, including billboards, directional signs, and exterior building signs.

6. Communications with Customers and Other Publics. Advertising, personal selling, sales promotion, merchandising, and public relations and publicity activities are often considered only as ways to influence customers to buy.

THE PRODUCT/SERVICE MIX Communications with Customers and Other Publics

They do, however play a more subtle role in influencing customers’ images of organizations. Negative publicity can detract from an organization’s image. Positive publicity can enhance that image. The quality and size of an advertisement, as well as its media placement choice, give customers mental clues to the organization’s stature. Promotional and premiums must be consistent with the organization’s image of quality. The organization's Web site is another important element of these communications.

PRODUCT DEVELOPMENT DECISIONS

1. Organization-Wide Decisions.

a- Width and Length of Product/Service Mix.

b. Improving or Modernizing the Product/Service Mix.

c. Branding.

2. Individual Facility/Service Decisions.

PRODUCT DEVELOPMENT DECISIONS 1. Organization-Wide Decisions.

When Disney established the Disney Cruise Line, it expanded its product/service-mix width (the number of different services provided by an organization).

In marketing jargon, it added a product line

1. Organization-Wide Decisions1.Width and Length of Product/Service Mix.

For example, when Richard Branson’s company, Virgin, got into the passenger rail business in the United Kingdom it was diversifying and adding to 115 product/service-mix width.

When Air Canada acquired another airline, Canadian, it increased the length of its product/service mix, as did Marriott when it acquired a part ownership of Ritz-Carlton Hotels.

Organization-Wide Decisions2.Improving or Modernizing the Product/Service Mix.

Sometimes a company determines, usually through a situation analysis or marketing research, that the time has come to upgrade all or part of its product/service mix. Airlines do this frequently.

Theme parks are constantly updating and adding to their entertainment mix. They do this to encourage repeat visitation. Cruise lines temporarily remove ships from service in order to undertake necessary maintenance and on board improvements.

c. Branding. There was a time when branding was relatively unimportant in the hospitality and travel industry; the company’s name was all that was attached tothe service. Branding is becoming more important as many companies expand:the width and length of their product service mixes. The advantages of branding include the following:

Organization-Wide Decisions3. Branding

• Helps the company segment markets

• Gives the company the potential to attract loyal and profitable customers

• Improves the company’s image if their brands are successful

• Helps track reservations, sales, problems, and complaints

Individual Facility/Service Decisions

Product/service-mix decisions also have be made by the individual hotel, restaurant, agency, or other hospitality/travel outlet. These decisions concern the quality, range, and design of the facilities and services provided. Again, the situation analysis and other marketing research studies’ should provide the impetus for changing these elements.

PARTNERSHIP

Marketing partnerships of many varieties have become more popular in recent years in the hospitality and travel industry as more companies realize the advantages of relationship marketing

They range from “one-shot” (short-term) cooperative promotions to strategic. (long-term) joint marketing agreements that may involve some combination of the products or services of two or more organizations

Types of partnership1. Customers. Frequent traveler programs are a good example of a partnership program with customers. These were introduced to

build customer loyalty to the companies, but