NRRt 270 Exam 2
Terms in this set (96)
The provision of accommodation, food, and drink for people away from home for reward "spirit of Hospitality"
Average around 65%
Early Tourism Accommodations
Private dwellings, caravansaries, monasteries, english taverns, and ordinaries.
Food Service Sector
Old businesses evolved with accommodations, French influence
Cultural, natural , recreation, and entertainment attractions, as well as festivals and events.
Business travel: Typical customer is male, age 35-54 average income is $85,900, Leasure travel: 2 adults, age 35-54, average income $77,100.
Trends in the lodging industry
Technology has had a big impact, Consolidation- more rooms fewer names, franchising, segmentation, brand diversification.
Regions where rooms are found
30%- North America
15% -Asia and Pacific
2%- Middle East
One of the fastest growing segments in the lodging industry. US is leader in timeshare market.
Typically 2 adults
Age 35-54 years
Average income of around $77,100
Travels by auto (77%)
Make reservations (86%)
Tend to stay in slightly less expensive accommodations ($103 ADR)
Age 35-54 years
Average income of around $85,900
Typically travel alone (56%)
Make reservations (90%)
Commonly Used Terminology
RevPAR (Revenue per available room)
Multiply a hotels average daily room rate by occupancy rate, Average Daily Rate, Occupancy %,
Full service hotel, Limited service hotel, Resort Hotel,
Cities / trade centers, Early monuments, Spas and seaside resorts, Festivals and athletic contests
National Register of Historic Places, 25% adults visit a site every year. National Trust for Historic Preservation Maintains over 66,000 historic sites. Preserve America-843 communities
monuments such as the Egyptian pyramids
'A special category including any kind of food or drink business that is recognized in a special manner for an exceptional, one-of-a-kind experience'.1
-farmers market, culinary museum.
Types of natural attractions
Landscapes, parks & forests, Flora and Fauna, Islands, natural "wonders"
Most visited parks in U.S.
1. Golden Gate national rec area, 2. Great Smokey Mountians nat. park, 3. Grand Canyon, 4. RMNP
Cinque Terre National Park
Italy's first national park in 1999. Smallest national park in Italy. Hiking trail links to a string of centuries-old seaside villages on Italian Riviera Coastline. 5 villages, cute colorful homes and vineyards!
Features of natural attractions
-travel to the coast to enjoy the beaches, travel to the west to see the mountains (scenery)
-Rocky Mountain National Park and elk bugling
-African safari to review native wildlife
-unique island environment - Galapagos
Types of festivals and events
festivals, religious events, sporting events, conferences and trade shows
Types of festivals
historic, special interest, seasonal, music
what is a festival?
Festivals typically are known for catering to a broad and diverse audience but elements of the festivals can be targeted to appeal to specific markets (for example, birder festivals cater to avid birders but also have games and rides, etc. for all interests)
Festivals known to center around specific seasons or times of the year - particularly useful for attracting people during the off-season to areas and to providing revenue to small local communities
Originated in Germany
Taste local/craft beers
Musical and unique entertainment present
Takes place in the month of October
Numerous towns/cities take part in the annual festival across the country and world.
World's oldest annual marathon
To run the marathon, runners must run a qualifying time at a certified marathon
ISSRM conference in Sweden - way of putting places on the map and can have a big economic impact, particularly in small communities
Indoor and outdoor facilities where people can participate in sports and other recreational activities
-must participate in event not just spectate
$37.5 Billion/year in revenues
The roots of these attractions go back to medieval Europe, when pleasure gardens were created
Theme park companies
-Anheuser-Busch Theme Parks
-International Association of Amusement Parks and Attractions
Top theme parks in U.S.?
1.Magic Kingdom $17.5 mil
2. Disneyland $15.9 mil
3. Epcot $10.9 mil
Trends in gaming industry
Only 2 states permitted gambling in 1988, now 28 have casino gaming
Controversial, yet an extremely popular form of entertainment with huge economic impacts ($83.7 billion business)
87 % of Americans view it as acceptable entertainment
67% view it as important part of community entertainment and tourism offering
Number of states allowing gambling?
Reason for development - Branson...entertainers became tired of going on the road, instead of going to where the audience was, they bring the audience to them.
Top Entertainment Towns
Mostly know for their music. New Orleans, Nashville, Branson Missouri, Myrtle Beach
-Zoos and Aquariums
-Dave and Buster's
Mumbai terror attacks
173 killed, 308 wounded
Ten separate attacks
Taj Majal Palace and Tower was the standoff
All terrorists killed except one
MGM grand fire
87 people kiled on November 21, 1980, resulted in many changes in hotel design and operation.
Hyatt Regency Kansas City Walkway
114 killed, largest U.S. hotel disaster in history
6 uses of tourism research
1.To identify significant problems- Why are visitor numbers down in an area?
2To keep a business in touch with its markets
3. To reduce waste
4. To develop new sources of profit
5. To aid in sales promotion
6. To create good will
data collected for a specific issue on hand.
data already available. Cheaper to obtain and more readily available
Basic research methods
very common technique for research collection
Qualitative vs. Quantitative
Quantitative - more structured, fixed questions and response options (researcher-defined)
Qualitative - more depth and explanation, often involves face-to-face interviews with open-ended questioning, case studies, and/or narratives
PROS: flexability, amount of info , observation, follow-up questions, sample control, CONS: Cost, time , interviewer bias
PROS: Can conduct rapidly, Low cost, CATI( Computer assisted phone interviews). CONS: Less flexability, telemarketing trends, land line disappearance, blocked calls.
PROS: Potential for lower cost, can cover large geographic areas. CONS: Hard to obtain good sample lists, harder to get adequate response, need to pay close attention to survey length and question wording, sample control is difficult
PROS: Wave of the future is now, low cost, less effort. CONS: Consumer distaste for unsolicited marketing, Because of low cost, many poorly qualified ppl carrying out survey
A form of qualitative research
Brings together a small number of individuals for an in-depth discussion on topic of interest
Participants chosen to represent cross-section of stakeholders
Extrapolate to general population with care - small sample, representative?
Direct observation and recording of tourist behavior - examples?
Accurate and objective method
Can be costly
Describes behavior but we don't understand the "why
Channels of distribution
Role of marketing
To match the right product or service with the right market
The four "P's" + some
Difference between marketing and promotion?
not interchangeable. Marketing matches wants and needs and develops a product. Promotion tries to influence attitudes and behaviors of a buyer to create demand.
Dominant pricing strategies
1. Sell at market price
2. Sell at below-market price
3. Sell at above-market price
Earliest form of transportation?
Set price as high as possible and appeal only to the top of the market, easy to pay off development costs quickly, price is gradually lowered- Example, Electronics!
set price as low as possible to penetrate market completely, gets a larger market from the get-go, price remains the same (hard to raise the price later)
Sell product at below-market price and create the reputation of have the lowest prices
Ex: Motel 6
Basis for market segmentation
use a variety of media, not necessarily specializing your approach (e.g., TV ads, variety of magazines, etc.)
Four components of marketing planning
1. environmental scanning
2. Market assessment
3. Organizational Inventory
4. Strategic Advantages and goal setting
Types of advertising
3. Online Marketing
Life cycle of a product
1. Introduction- focus on promotion. 2. Growth- Focus on creating loyalty. 3. Maturity- focus on modifications. 4. Saturation- focus on extension. 5. Decline- focus on new programme options. 6. entension- revival of interest via changes . 7. Petrification- focus on phasing program out. 8. Death- focus on new program options.
Global distribution system
system of tourism distribution that is used by airlines, rental car companies and hotels to post inventory and sell products
American Airlines biggest in U.S. and world
Most energy efficient mode of transportation in the US?
Purpose of product branding?
To distinguish unique identity
Seven Wonders of Ancient World
1. Hanging Gardens of Babylon
2. Great Pyramid of Giza
3. Colossus of Rhodes
4. Lighthouse of Alexandria
5.Temple of Artemis
6.Statue of Zeus at Olympia
7.Mausoleum at Halicarnassus
Bed and Breakfasts
Unique experience that is usually marketed through travel guides and word of mouth. Family host feel.
Types of Cultural Attractions
Historical sites, museums, architecture, culinary tourism
Like Boston Marathon, x-games, or olympics, have a large impact on host economy
Security and Safety Issues
Terrorism, Crime against Tourists, Fire, Natural Disasters, Health Care, Outbreaks
Tourism Safety Organizations
-Police, fire, local public safety agencies
-Health Care Providers
-State and National Agencies
-DMO's and national/international associations
UNWTO Emergency Response
-Created Emergency response network in 2006
-Created to deal with natural disasters, and outbreaks
-Linked to World Health Organization
Terrorism and Travel
-1970's-1980's were primarily airplane hijackings where US citizens were harmed
-TWA Flight 847 changed that on 6/24/85
-9/11 had many US deaths
Impacts of Airline and Port Security
-Slower Check-in, screening, and customs
-Profiling and increased public safety intimidated some from traveling
Miami, Florida 1993
-Series of high profile murders of tourists in Miami
-Targets: International visitors renting cars
-One family killed in broad daylight on a major highway
-Followed by robbery/ shootings in Tallahassee, Tampa, Orlando
-state changes rental car license plates, companies stop putting stickers of rental cars
-24 hour rest area security
-Miami CVB develops safety brochures
Health Care Away From Home
-Major issue for international travelers (language, cultural, insurance barriers)
-Destinations can prepare with information, access, interpreters, and training
-Visitor population will be the toughest to deal with during quarantine
-Away from home without access to food, water, family
economic, legal/political, technology, sociodemographics, competition
demographics, lifestyle, motivations, product services, expectations, examines changes in these factors over time (trends)
-personnel, physical facilities, equipment, location, reputation, special/ products/services, market served/position
Strategic Advantages/ Goal Setting
Bring the other 3 components together, identify advantages
advertising, publicity/public relations, print/brochure, online, promotions
strong method of researching, allows targeted demographic, effective in generating response, easy measure
Targeted Demographic audience, used to sell price, travel section common
fulfillment/ lure visitors, large extended message, usually part of campaign, can be a targeted demographic area
Television/ Radio, Radio is most effective (limited in message time/single dimension), Radio can target demographics , Television most expensive (mass media)
Search Engine marketing (very expensive), Search engine optimization (costs less), links are key, pay per click, social media, banner ads
Often in cooperations (broadcast/radio), usually involves giveaway, packages, etc.
Group Tour Market, Retail Travel Agencies, Online Travel Agencies, Specialty Travel and Bank Travel, cost effective, usually looking for substantial discount, one of many ways to reach international markets