The Power of Promotion: Importance of Marketing in Travel and Tourism
Hello! Welcome to the exciting world of Destination Marketing. This chapter is vital because even the best tourist attractions—think incredible beaches or amazing historical sites—can fail if no one knows about them.
Marketing is essentially how travel and tourism organisations tell the world, "Come and visit us!" It is about making sure the right people know about the right product at the right time.
Why is Marketing so important? Because the travel industry is fiercely competitive. Every hotel, airline, and destination is fighting for the tourist's time and money!
What Exactly Does Marketing Do for an Organisation?
Marketing is much more than just putting an advert on TV. Its importance can be broken down into four core goals, covering financial success, competitive edge, reputation, and customer relationships.
1. Achieving Financial Success
The primary goal of any commercial organisation is to make money and grow. Marketing directly drives this financial success.
Increased Sales, Usage, and Profitability
Marketing strategies are designed to get more customers to buy more products (flights, hotel stays, tours, etc.).
- Increased Sales/Usage: If a tour operator runs a marketing campaign showing beautiful images of a remote island, more people will book trips. This is an increase in sales.
- Profitability: Sales revenue must be higher than the costs of running the business. Effective marketing ensures that the volume of bookings (sales) is high enough to generate a good profit.
Market Share and Customer Base Growth
Travel markets are rarely controlled by just one company or destination. Organisations want to increase their size relative to competitors.
Market Share Analogy:
Imagine the total number of tourists visiting Italy in a year is a large pizza. If your organisation (e.g., a specific resort chain) attracts 10% of those tourists, your market share is 10%. Effective marketing helps you grab a bigger slice of that pizza (e.g., increase to 15%).
- Market Share: The percentage of the total market that one organisation controls. Marketing helps increase this by stealing customers from competitors or attracting new tourists into the market.
- Customer Base: Marketing expands the total number of different people who have purchased from the organisation. A bigger customer base means more stable income.
Quick Review: Financial Importance
Marketing helps the organisation survive and thrive by ensuring:
Revenue (Sales) is high.
Profit is generated.
Share (Market Share) increases.
2. Gaining Competitive Advantage
In tourism, competition is everywhere. You are competing with destinations down the road, and often, with destinations across the world.
Defining Competitive Advantage
A competitive advantage is something that makes a product or service stand out as better than the competition in the eyes of the consumer.
- Highlighting Unique Selling Points (USPs): Marketing identifies and shouts about the unique characteristics of a destination.
- Example: If many hotels offer a swimming pool, that is not a USP. But if your hotel is the *only* one built inside a natural cave with a view of a volcano, that is a strong USP that marketing will heavily promote.
Marketing ensures that when a tourist chooses between Destination A and Destination B, they choose A because the marketing has clearly shown A offers superior value, better experience, or a lower price (depending on the strategy).
Did you know? Even a small town can gain a huge competitive advantage just by marketing a unique annual event (like a famous music festival or a historic parade) that draws international visitors.
3. Building a Positive Image and Reputation
Tourists often book travel months in advance based entirely on trust and perception. Marketing is crucial for controlling that perception and building a strong brand.
Developing Brand, Image, and Reputation
- Brand: This is the promise a destination makes to the tourist. (e.g., Singapore = Efficiency and Modernity; New Zealand = Adventure and Nature.)
- Image: Marketing uses consistent messages, logos, and colours to create a positive picture (image) in the tourist's mind.
- Reputation: This is built over time based on what the destination actually delivers. Good marketing manages expectations and highlights positive outcomes.
The Importance of Sustainable Practices
Modern tourists, especially younger travellers and those from developed economies, are increasingly aware of environmental and social issues. They want to travel responsibly.
Marketing plays a vital role by:
- Communicating Eco-efforts: Organisations must actively market their commitment to sustainability. If a hotel uses solar power or hires only local staff, marketing must tell the customer this to attract responsible tourists.
- Ethical Appeal: A positive reputation for sustainability (e.g., being certified "Eco-Friendly") provides a strong competitive edge over rivals who do not promote their practices.
- Crisis Management: If negative events occur (like an environmental accident or political instability), marketing strategies are essential to quickly manage the image and rebuild consumer trust.
Key Takeaway: Reputation
A positive brand image, especially one highlighting sustainable practices, is vital for long-term trust and attracting the growing segment of environmentally conscious travellers.
4. Ensuring Customer Loyalty and Repeat Business
It is generally much cheaper and easier to get an existing customer to return than it is to find a completely new one. Marketing focuses on keeping customers happy so they come back.
Customer Satisfaction and Loyalty
Marketing does not stop when the customer buys the ticket. It includes post-trip communication and service delivery.
- Customer Satisfaction: By using market research (covered later in the syllabus), organisations know exactly what customers want and expect. Marketing helps them meet or exceed those expectations.
- Brand Loyalty: When customers are consistently satisfied, they become loyal. This means they will choose the same airline or hotel chain again and again, even if a competitor offers a slightly cheaper alternative.
Think of it like choosing your favourite smartphone brand. You are loyal because you trust the quality and service they have consistently provided, and you are unlikely to switch.
Generating Repeat Business
Loyal customers generate repeat business. This is the ultimate goal of strong relationship marketing.
- Direct Marketing: Sending previous customers special offers or personalised emails (e.g., "We loved having you. Here is a 10% discount on your next booking!").
- Word-of-Mouth: Satisfied customers become powerful, free promoters. They share their positive experiences with friends and family, generating new, high-trust business for the organisation.
Summary of Importance (The Four Pillars)
Remember the importance of marketing using these four simple pillars:
- Financial Health: Drives sales, market share, and profitability.
- Competitive Edge: Highlights USPs to stand out from rivals.
- Image & Trust: Builds a positive reputation, especially regarding sustainability.
- Retention: Ensures customer satisfaction, loyalty, and repeat bookings.
If an organisation neglects marketing, they risk being overlooked, losing market share, becoming irrelevant, and ultimately, failing financially.