Marketing for Tourism provides an introduction to the theory of Marketing for marketing and its application in the various sectors of the travel and for Marketing fourth edition tourism industry. This leading text has been fully revised and updated to Tourism take account of recent changes within this dynamic environment. J Christopher Holloway The fourth edition provides a wide international dimension, notably in the 13 longer case studies at the end of the text. A brand new section shows full colour illustrations of recent advertising and promotional strategies. There is broad-ranging coverage of key issues such as branding, CRM, Marketing for sustainability and the changing patterns of distribution in this fast- fourth edition moving industry. A strong pedagogical structure throughout the book includes learning Tourism objectives, mini cases, and end-of-chapter questions and issues for T discussion. Clearly laid out and accessibly written, the book is ideal for ourism students taking modules on marketing for tourism within undergraduate and masters-level degrees in Tourism, Hospitality, Marketing and Business Studies. J Christopher Holloway Key Features • Range of brand new and international cases f • Coverage of relationship marketing, branding and sustainability ourth edition • Impacts of new technologies, internet and e-marketing • Thorough update, particularly of tour operating and retail environments • New chapter on the sales function • Website provides a selection of presentation slides at www.booksites.net/holloway Holloway Chris Holloway was formerly Professor of Tourism Management, University of the West of England. www.pearson-books.com an imprint of Marketing for Tourism We work with leading authors to develop the strongest educational materials in leisure and tourism, bringing cutting-edge thinking and best learning practice to a global market. Under a range of well-known imprints, including Financial Times Prentice Hall, we craft high quality print and electronic publications which help readers to understand and apply their content, whether studying or at work. To find out more about the complete range of our publishing, please visit us on the World Wide Web at: www.pearsoned.co.uk Marketing for Tourism FOURTH EDITION J Christopher Holloway Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsoned.co.uk Second edition published by Pitman Publishing 1992 Third edition published by Longman Group Limited 1995 Fourth edition 2004 © J C Holloway and R V Plant 1992 © Pearson Education Limited 1995, 2004 The right of J Christopher Holloway to be identified as author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London W1T 4LP. All trademarks used herein are the property of their respective owners. The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners. ISBN 0 273 68229 6 British Library Cataloguing-in-Publication Data A catalogue record for this book is<None> available from the British Library Library of Congress Cataloging-in-Publication Data Holloway, J. Christoper. Marketing for tourism / J. Christopher Holloway. –– 4th ed. p. cm. Includes bibliographical references and index. ISBN 0-273-68229-6 1. Tourism. 2. Tourism––Marketing. I. Title. G155.A1H647 2004 910’.68’8––dc22 2004045152 10 98765432 09 08 07 06 05 Typeset in 9/12pt Stone Serif by 35 Printed by Ashford Colour Press Ltd, Gosport The publisher’s policy is to use paper manufactured from sustainable forests. Contents Preface xi Acknowledgements xiv List of abbreviations and glossary xv Part ILaying the groundwork 1 The marketing perspective 3 Learning outcomes 3 Introduction 3 What is marketing? 6 A historical overview 8 Some issues in travel and tourism marketing 8 Marketing as a field of study 11 Constraints in marketing 12 Categories of marketing 15 The nature of tourism services 16 2Marketing planning 23 Learning outcomes 23 What is marketing planning? 23 Planning for what? 24 Setting objectives 26 The business environment 26 SWOT analysis 30 Strategic planning 36 Collaborative marketing 40 Forecasting 42 Setting the marketing budget 47 Organising for effective marketing 48 The marketing mix 52 Controlling the marketing plan 56 v vi n Contents 3Marketing research and its applications in tourism 59 Learning outcomes 59 What is marketing research? 59 Why marketing research? 62 What information do we need? 63 Commissioning research 63 The Marketing Information System 64 Ethics in research 72 Qualitative versus quantitative research methods 84 Econometric models 86 4 The tourist market 100 Learning outcomes 100 Introduction 100 Understanding needs and wants 101 Organisational marketing 111 Relationship marketing 113 Applying the theory in marketing tourism 115 Segmentation in travel and tourism marketing 116 Other lessons from Maslow 119 Decision-making for the travel purchase 122 Market segmentation as a guide to marketing planning 124 5Tourism product policy 129 Learning outcomes 129 What is product policy? 129 Differentiating the product 131 Branding 134 The product mix 144 The product life cycle 146 Revitalising a product 149 Launching a new product 151 The sustainable product 154 Why do products fail? 155 Screening the new product 157 6Pricing the product 161 Learning outcomes 161 Introduction 161 Contents n vii The economics of price 162 Pricing and yield management 165 Internal influences on pricing 169 Pricing and the product mix 171 The role of price in the tourism marketing mix 173 Other influences on price 174 Developing a price policy 175 Non-commercial pricing policies 180 Strategic and tactical pricing 183 Discounting tactics 185 Part II Reaching the customer 7Marketing communications and ICT applications 191 Learning outcomes 191 Introduction 191 The communications process 192 Determining the promotions mix 195 Communications and ICT 197 The communications budget 199 Determining the message objectives 200 Designing the message 203 Successful communications 205 8Distributing travel and tourism 208 Learning outcomes 208 Introduction 208 Channel choice 209 Cost 210 Control and level of service 210 Efficiency 211 Transport distribution 212 Tour operators 216 Distributing accommodation 217 Intensive versus selective distribution 218 Distribution through travel agents 219 Cooperative distribution systems 222 Building links with the retail agent 225 Inventory control 230 Reservations systems 231 Future directions 236 viii n Contents 9 The sales function 238 Learning outcomes 238 Introduction 238 The use of social and personal skills 240 The sales sequence 242 The role of the sales representative 246 Managing sales representatives 248 Selling through travel agents 251 Travel agency design 254 10 Tourism advertising 263 Learning outcomes 263 Introduction: ethical issues 263 Advertising objectives 265 Expenditure 266 Strategy in advertising 268 Timing the campaign 278 Advertising agencies 279 Evaluating the impact of advertising 282 Door-to-door distribution 284 11 The travel brochure 286 Learning outcomes 286 The role of the travel brochure 286 Preparing the brochure 287 Accuracy and statutory requirements 292 Segmentation of the market 294 Evolution problems 295 Distributing the brochure 296 The brochure at point of sale 298 The e-brochure 298 Evaluating the brochure 301 12 Sales promotion for travel and tourism 303 Learning outcomes 303 The nature of sales promotion 303 The techniques of sales promotion 305 Planning the sales promotion 309 Contents n ix Evaluating the impact of promotion 312 Exhibitions and trade fairs 314 Making trade presentations 316 Planning and organising consumer presentations 317 13 Direct marketing: theory and practice 321 Learning outcomes 321 What is direct marketing? 321 Evaluating the impact of direct marketing 328 Direct sell holidays 329 Using databases 330 Direct marketing for destinations 332 Some guidelines for good direct mail letters 333 14 Public relations and its uses in the tourism industry 338 Learning outcomes 338 Why PR? 338 PR: its definition, characteristics and role 339 The organisation of PR 342 The PRO 343 Mounting a PR campaign 343 Gaining publicity 344 Press relations 345 The familiarisation visit 354 Handling unfavourable publicity 359 Evaluating campaign results 362 Corporate social responsibility 363 15 Marketing control 367 Learning outcomes 367 Control in the marketing process 367 Performance control 369 Quality control 371 Financial control 372 Efficiency control 373 Strategic control 375 x n Contents Part IIICase studies 1 An integrated marketing campaign to expand Travelocity’s member base 381 2 Small business survival in the wake of September 11th: the case of Trips Worldwide 396 3 Marketing a specialist product: the holiday homes rental market in Norway 403 4 Restructuring an airline: the fall and rise of Adria Airways 414 5 Leeds Castle: reappraising marketing