Promoting to Target Markets Chapter 6

1. Promoting to Target MarketsChapter 6

2. Unit Essential Question What are the three main hospitality markets and what promotional activities are most effective to reach them?

3. Essential Question 1 What role does demographics play in hospitality marketing?

4. Customer Demographic • Meeting the Needs of a Target Market • Market: A group of all potential customers who share common needs and wants, and who have the ability and willingness to buy the product. • Target Market: The specific group of people the business wants to reach. • Niche Market:A small, uniquely defined group of people.

5. Customer Demographic • Market Segmentation: Dividing the total market into smaller groups of people who share specific needs and characteristics. • Elements of Market Segmentation • Geographics: Segmentation of the market based on where people live.

6. Customer Demographic • Demographics: Statistics that describe a population in terms of personal characteristics. These include age, gender, income, ethnic background, education, etc. • Psychographics: Involves the study of customers based on lifestyle, and the attitudes and values that shape it.

7. Customer Demographic • Product Benefits: Built in features of products in response to consumer needs and wants. • Product Usage: Involves the frequency of use of a product. This information allows marketers to promote preferred goods and services. • A Closer Look at Demographics • Astute marketers pay attention to demographics. • Special attention must be given to female business travelers, senior citizens, and families who travel short distances to sporting events.

8. Customer Demographic • Marketing to Seniors • The hospitality industry must carefully consider price and security. • Seniors enjoy traveling with others in their age group. • The current senior population is disproportionately women to men; nearly 4 to 1.

9. Customer Demographic • Marketing to Baby Boomers • Baby Boomers present a great opportunity to the hospitality industry. • Unlike current senior citizens who grew up being thrifty during the depression years, Baby Boomers freely use credit and are more likely to spend money on a wide array of hospitality venues.

10. Customer Demographic • Self-Perception and Reality • Most people think of themselves as being younger than their real age. • Advertisers will use pictures of younger people to advertise to an older group. • Interactive Marketing • Interactive Marketing:Advertisements on a hotel guest’s television. • This sophisticated means of advertising can track guest interests and make the ordering process easier for customers.

11. Essential Question 2 What do business travelers want?

12. The Business Traveler • The Business Traveler • Business Travelers: Potential customers who are on the go for meetings, conferences, and trade shows within the United States and throughout the world. • Teleconferencing and videoconferencing was predicted to reduce business travel however, business travel has not decreased. • The number of business travelers is at an all time high.

13. The Business Traveler • What Business Travelers Want • A place to sleep • An office • A work room • A place to entertain

14. The Business Traveler • Trends Worth Watching • The average business traveler takes ten trips per year. • Only 4% of business travelers order an in-room movie. • Importance of High Technology • Business travelers are addicted to technology. • Mobile cell phones and laptop computers are common devices toted by business travelers. • Hotel rooms must be more accessible to technology needs.

15. The Business Traveler • Health trends • 50% of travelers over 35 take daily vitamins compared to 40% under 35. • 28% of young business travelers carry medical information on business trips compared to 38% of veteran business travelers. • 25% of the younger generation use the gym versus 14% of the older travelers. • Hotels must continue to provide state-of-the-art equipment in their spas and recreational facilities to meet the demand of the new generation.

16. The Business Traveler • Dining styles • 30% of men and 22% of women enjoy dinning out. • 13% of men and 8% of women will likely have an alcoholic drink. • 23% of men and 18% of women will have a dessert. • 31% of new business travelers will use in-room coffee makers compared to 49% of veteran business travelers. • Younger travelers are less likely to eat alone. • 17% of young travelers will unlock the mini-bar as opposed to 9% of experienced travelers.

17. The Business Traveler • More female executives • Women want responsive service and respect from hotels equal to that given to their male counterparts. • Women tend to research an area more than men before traveling to a business location. • 33% of women will take a friend or significant other with them on a business trip and plan leisure time compared to 13% of men.

18. Essential Question 3 What does the leisure traveler want?

19. The Leisure Traveler • Leisure Traveler • Leisure Travel: Travel taken solely for vacation or pleasure. • Leisure travel is a precious commodity for most individual families. • It is important for the leisure activity to provide the most satisfying experience possible.

20. The Leisure Traveler • Adventure Travel • Hard Adventure Travel • Requires physical strength and endurance. • Examples include: whitewater rafting, snorkeling or scuba diving, off-road biking, etc. • Soft Adventure Travel • Requires less rigorous exertion. • A growing senior population is demanding an increasing amount of soft adventure travel. • Examples include: Cruise ship tour of Alaska, Bird-watching expedition on the south coast of Texas.

21. The Leisure Traveler • Leisure Travelers’ Preferences • Leisure travelers have different preferences than business travelers. • People on vacation want to enjoy cable television and an easy to read newspaper like USA Today.

22. The Leisure Traveler • The Impact of Senior Travelers • Half of the Baby-Boomer generation will live to be 100. • In 1900, only about a quarter of the population lived past age 65. Today, 80% does. • At the beginning of the 20th century, the average life expectancy was 42 years. Today, it is 84 years. • People age 85 and older are the fastest growing segment of the population.

23. The Leisure Traveler • Alternative Leisure Lodging • Timeshares • These properties are a tax deductible investment for some individuals. • This type of investment allows individuals families to vacation in an apartment or condominium. • Regardless of lodging type, the key to success for the hospitality industry is occupancy. • Airline seats and hotel rooms are perishable commodities. • Competition has made it more difficult to sell out.

24. The Leisure Traveler • Incremental Revenue • Incremental Sales:Sales to new customers outside the normal distribution channel. • The internet has helped the hospitality industry sell additional rooms and airline tickets. • Priceline and Cheap Tickets allow consumers to purchase their hospitality needs over the internet.

25. Essential Question 4 Why is international travel important and what special considerations must be made for the international traveler?

26. The International Traveler • The Growth of International Travel • The United States is the top destination for international travelers. • Welcome to Our Country • International consumers are not afraid of high prices. • International customers are very loyal when they receive good accommodations and service. • International companies do not always understand how U.S. businesses operate. The idea of going after the highest bidder instead of a long-term relationship is a turn-off for some international customers. • Long-term relationships take time and nurturing.

27. The International Traveler • Making Guests Comfortable • Hotels interested in the international traveler will hire people who can speak more than one language. • Hotels that want international business will have flexible arrival and departure times. • Most international flights leave the U.S. in the evening so check-out should be extended to 4 or 5 with out an extra charge. • Most flights from Europe arrive between 6 and 7 AM so early check-in should be available to help adjust from Jet Lag:A feeling of fatigue and disorientation caused by the disruption of the body’s normal rhythms.

28. The International Traveler • What’s for Dinner? • International travelers appreciate touches that make them feel at home. • Understanding cultures and their culinary peculiarities is a must for hotels to be successful in the international traveler market. • Some international travelers smoke more frequently than others and do not expect restrictions on their practice. Smart managers of hotels and restaurants make appropriate adjustments for groups from a specific area in the world.

29. The International Traveler • Bon Voyage • International travel requires appropriate research. • Selecting A Travel Agent • Travel agents are still widely used for international travel. • Full-service travel agencies: • Provide tailored service and personal attention to their customers. • They earn commissions on lodging, airline tickets, and car rentals. • Using a travel agent does not normally increase the price since agents receive a commission.

30. The International Traveler • Specialist or destination agents: • Focus on special travel niches. • Examples include: Tours of Italy, Skiing in Switzerland, Cruses, Dude Ranches, etc. • Rebaters: • They give part of their commission back to travelers in order to provide the lowest prices. • They deal with people who know exactly where and how they are going to travel. • Fee-based agents: • They charge clients a fee for their services. • They do not receive commissions from service providers.

31. The International Traveler • Insurance for International Travel • Insurance for international travel is a good idea. • If the airline goes bankrupt, the political environment becomes to unsafe, or a trip is cancelled, the insurance covers expenditures that otherwise would be lost. • Travelers buy flight insurance to cover possible death and injury due to a crash, collision, fire, or other catastrophe.

32. The International Traveler • Working With International Hotels • Concierges: Provides personalized service to hotel guests. • They are a good source of information and can arrange any assistance that the guest may require.