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Learning Objectives Chapter 12: Packaging and Programming

Learning Objectives Chapter 12: Packaging and Programming. Define the terms packaging and programming. Explain the relationship between packaging and programming. List the reasons for the increased popularity of packaging and programming in the hospitality and travel industry.

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Learning Objectives Chapter 12: Packaging and Programming

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  1. Learning ObjectivesChapter 12: Packaging and Programming • Define the terms packaging and programming. • Explain the relationship between packaging and programming. • List the reasons for the increased popularity of packaging and programming in the hospitality and travel industry. • Explain the five key roles of packaging and programming in marketing hospitality and travel services. • Explain the difference between packages developed by intermediaries and packages developed by others.

  2. Learning ObjectivesChapter 12: Packaging and Programming • List and explain four ways of classifying packages. • Describe the steps that should be followed in developing effective packages. • Define the procedures used to price packages.

  3. Packaging The combination of related and complementary services into a single-price offering. Programming The development of special activities, events, or programs to increase customer spending, or to give added appeal to a package or other hospitality/travel service. Definitions of Packaging and Programming

  4. Relationship of Packaging and Programming Packaging + Programming Packaging Programming • Packaging without programming 2. Packaging and programming together 3. Programming without packaging

  5. Customer Reasons for the Increased Popularity of Packaging and Programming

  6. Participant Reasons for the Increased Popularity of Packaging and Programming

  7. Participant Reasons for the Increased Popularity of Packaging and Programming

  8. Key Roles of Packaging and Programming • Smooth out patterns of business. • Improve profitability. • Assist in the use of segmented marketing strategies. • Bring together the components of the organization’s product/service mix. • Bring together related hospitality and tourism organizations into partnerships.

  9. Packages Developed By Intermediaries Tour wholesalers/operators Incentive travel planners Travel agents Convention/meeting planners Usually commissionable Usually bought through travel agents Packages Developed By Others Suppliers Carriers DMOs Clubs Special-interest groups Universities Non-profit groups May or may not be commissionable Can be bought directly from package developer Differences in Packages That are Available to Guests

  10. Package Elements All-inclusive Escorted tours Fly-drive Fly-cruise Accommodation & meals Event packages Packages with programming for special interests Target Market Incentives Convention/meeting Affinity groups Family vacations Special-interest groups Four Ways of Classifying Packages

  11. Duration Or Timing Weekends Holidays Seasonal Off-peak Arrangements Or Destination FIT GIT Charter tour Destination package (e.g., Europe or Hawaii) Four Ways of Classifying Packages

  12. How to Develop Effective Packages • Include attractions or other demand-generators. • Provide value to the guest. • Offer consistent quality and consistency among the package elements. • Provide a distinct customer benefit. • Cover all the details! • Generate a profit.

  13. How to Effectively Price Packages • Identify and quantify the fixed costs. • Identify and quantify the variable costs. • Calculate the total package costs on a per-person basis. • Add a mark-up or margin for profit. • Calculate the single supplement.

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