This chapter discusses the tourism marketing environment and key concepts related to tourism services. It covers the unique characteristics of services, the services marketing triangle, and the expanded 7 Ps marketing mix for services. It also provides an overview of tourism in Canada, noting that Canada is a top international destination and tourism contributes significantly to the GDP and employment. Finally, it examines the microenvironment and macroenvironment forces shaping the tourism industry, including demographic, economic, cultural, technological, political/legal, and environmental factors.

1. Chapter
THE TOURISM
MARKETING
ENVIRONMENT
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Prepared byPrepared by
Simon Hudson, Haskayne School of BusinessSimon Hudson, Haskayne School of Business
University of CalgaryUniversity of Calgary
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2. Chapter
Topics
• Influence of marketing on tourism
• Services marketing models
• Tourism in Canada
• Key players in Canada’s tourism
industry
• Micro and macro-environments
1The Tourism Marketing Environment
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3. Chapter 1
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4. Chapter
Four Unique Characteristics of
Services
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IntangibilityIntangibility
PerishabilityPerishabilityInseparabilityInseparability
HeterogeneityHeterogeneity

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6. Chapter 1
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The Tourism Marketing Environment
Four Unique Characteristics of
Services (continued)

7. Chapter
The Services Marketing Triangle
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8. Chapter
Expanded Mix for Services:
The Seven Ps
• Product
• Price
• Place
• Promotion
• People
• Process
• Physical Evidence
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9. Chapter
Tourism in Canada
• Canada is ranked as the 9th most popular
destination in the world with an international share
of 2.9%
• In 2002, Canada attracted 20 million international
overnight visitors who spent $17.8 million.
• Tourism GDP is $22.4 billion and nearly 600,000
people employed in tourism
• In 2002 Canadians made nearly 18 million overnight
trips outside Canada
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10. Chapter 1
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11. Chapter 1
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12. Chapter
Major Components in a Company’s
Microenvironment
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13. Chapter 1
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Major Components in a Company’s
Macroenvironment

14. Chapter
Demographic and Economic Forces
• DemographicsDemographics
– statistics that describe the observable
characteristics of individuals
– most notable demographic trend in
Canada is the aging population
• Economic forcesEconomic forces
– affect consumer purchasing power and
spending patterns
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15. Chapter
Cultural Forces
• Cultural environmentCultural environment
– institutions and other forces that affect
society’s basic values, perceptions,
preferences, and behaviours
– author Charles Leadbeater claims that
Canada is in the middle of a nostalgia
boom
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16. Chapter
Cultural Trends
• increased responsibility for those who drink & those who sell
and serve alcoholic beverages
• desire to develop individuality in order to be seen and treated
as different from others (egonomics)
• tendency to act and feel younger than one’s age (down-aging)
• urge to change one’s life to a slower but more rewarding pace
(cashing out)
• refusal to tolerate shoddy products and poor service (the
vigilant consumer)
• acceptance of the gay and lesbian community
• concerns for the environment
• increasing desire for smoke-free restaurants and hotels
• desire to regularly eat out.
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17. Chapter
Divide Into Groups
• Read the Fairmont Hotels case study
at the end of the chapter.
• Apply the eight major forces of the
macroenvironment to the Canadian
hotel industry today.
• What are the major forces shaping the
future for Fairmont?
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