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T&T Unit 10
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T&T Unit 10

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  • 1. 1 Unit 10Marketing Tour Business TRAVEL AND TOUR OPERATIONS
  • 2. 2Unit objectives:• Explain how to strategically price the tour.• Define taxes and fees, and explain how they affect travel suppliers and consumers.• Explain ways to target a market based on price points and level of service.• Explain key marketing strategies e.g. Marketing mix and Market segmentation. TRAVEL AND TOUR OPERATIONS
  • 3. 3 Topics• Tourism marketing components• Target market• Marketing concepts (4Ps and People)• Types of expense• Taxes and Fees• Supply and Demand TRAVEL AND TOUR OPERATIONS
  • 4. 4 Tourism Marketing Components• Buyer• Product• Producer TRAVEL AND TOUR OPERATIONS
  • 5. 5 Target Market Target market based on price points and level of service:• The lap of Luxury• The mass Affluent• A Hostel world TRAVEL AND TOUR OPERATIONS
  • 6. 6 Target Market• The lap of luxuryLuxury travel generally means more space, whether in a private jet, a commercial airliner, or a hotel room.Name-brand recognitions is often a significant part of defining luxury. TRAVEL AND TOUR OPERATIONS
  • 7. 7 Target Market• The mass influentThe mass affluent markets are consumers who ready to travel. New market opportunities are available to travel and tourism providers willing to create products and services for the large, new, affluent middle class. TRAVEL AND TOUR OPERATIONS
  • 8. 8 Target Market• A hostel worldA hostel is an inn that provides the budget tourist a minimal sheltered place to sleep for a minimal price.Luxury travel is out of the question for many people’s budgets. A large market exists for travel products and services offered at the lowest possible rate. TRAVEL AND TOUR OPERATIONS
  • 9. 9 Marketing Concepts• Products: such as vacation package• Price: the final price must be within the range the target customer is able and willing to pay• Promotion: use to make the target customer aware of the product• Place• People: in the tourism industry, people, i.e. staff, are important particularly in terms of their skills of customer care 25 Feb 2009 TRAVEL AND TOUR OPERATIONS
  • 10. 10 Type of expense• Fix expense• Variable expense TRAVEL AND TOUR OPERATIONS
  • 11. 11 Taxes and Fees Taxes and fees that added to the price of travel products and services, as follows;• Cost add-Ons Government at the local and/ or national levels legally levy the taxes added to the cost of travel and tourism services. The taxes may be calculated as a percentage of the total retail cost or may be assessed as a flat amount. TRAVEL AND TOUR OPERATIONS
  • 12. 12 Taxes and Fees• Hidden Fees Some hotels ‘nickel and dime’ their customers by adding fees to there final bills for items that customers generally assume to be included in the room rate, such as, swimming pool fee or early arrival fee. TRAVEL AND TOUR OPERATIONS
  • 13. 13 Supply and DemandYield Management• Travel and tourism business seek level out the number of travelers using their services at any one time and to maximize their yield, or revenue per person. To accomplish these goals, the businesses use a tool referred to as ‘Yield Management’. TRAVEL AND TOUR OPERATIONS
  • 14. 14Yield Management (cont’)• Yield management allows the seller to control inventory and maximize profits. The idea solution is to find a balance between selling more seats in advance at a lower price and selling fewer seats immediately at a higher price. TRAVEL AND TOUR OPERATIONS
  • 15. 15 Supply and DemandElasticity• A change in price can dramatically affect the demand for some travel products and services.• One of the factors impacting the elasticity of a product or service is the availability of alternatives. TRAVEL AND TOUR OPERATIONS