Chapter Copyright © 2009 by Nelson Education Limited. CONTEMPORARY ISSUES IN TOURISM AND HOSPITALITY MARKETING Prepared by Simon Hudson, Haskayne School of Business University of Calgary and Marion Joppe, University of Guelph

Chapter Copyright © 2009 by Nelson Education Limited. Topics Trends in tourism and hospitality marketing Marketing tourism in the experiential economy Growing importance of responsible marketing Application of cause-related marketing in tourism Marketing of sport and adventure tourism Marketing of tourism at times of crisis 13 Contemporary Issues in Tourism and Hospitality Marketing 13-2

Chapter Copyright © 2009 by Nelson Education Limited. Growth trends Tourism is expected to grow 4.5 percent annually over the next decade China will soon be most popular destination By 2020, an estimated 50 million Indians will tour overseas Business travel from, and among, developing countries will grow more rapidly than business market Two growth areas: China and India Certain sectors will grow faster than others, for example, cruise industry Global competition for travellers will continue to erode Canada’s traditional travel markets Tourism Marketing Trends Contemporary Issues in Tourism and Hospitality Marketing

Chapter Copyright © 2009 by Nelson Education Limited. Demographic trends –over the next 20 years, key markets for outbound travel will remain Europe, Asia, and the Americas –significant implications of demographic change in this century is aging of world’s population –world median age is projected to rise from 26 years in 2000 to 44 years by 2100 (see Table 13.1 for Canada’s forecast age structure) Tourism Marketing Trends Contemporary Issues in Tourism and Hospitality Marketing

Chapter Copyright © 2009 by Nelson Education Limited Forecast Age Structure of the Canadian Population (000s) Contemporary Issues in Tourism and Hospitality Marketing Table 13.1

Chapter Copyright © 2009 by Nelson Education Limited. Behavioural trends –life caching the increasing desire of individuals to convert those experiences into images and stories, which in return enable them to engage others rapid improvements in technology allow consumers to capture, store, collect, and display their holiday experiences to friends or family –technology affects the way travel is purchased Tourism Marketing Trends Contemporary Issues in Tourism and Hospitality Marketing

Chapter Copyright © 2009 by Nelson Education Limited. Experiential marketingExperiential marketing –marketing initiatives that give consumers in-depth experiences to provide them with sufficient information to make a purchase decision Tourism Marketing in the Experiential Economy Contemporary Issues in Tourism and Hospitality Marketing

Chapter Copyright © 2009 by Nelson Education Limited. TryvertisingTryvertising –emerging variation on product placement –practice of making consumers familiar with products and services by trying them out, so they can make a purchase decision based on experience –Example: Hotels partner with luxury car makers to offer high-end model test drives to guests during their stay Tourism Marketing in the Experiential Economy Contemporary Issues in Tourism and Hospitality Marketing

Chapter Copyright © 2009 by Nelson Education Limited. Sustainable tourismSustainable tourism –tourism that can maintain its viability in an area indefinitely and does not damage the environment –Profile: Machu Picchu, Peru –Snapshot: Praia Do Forte, Brazil Responsible Marketing of Tourism Contemporary Issues in Tourism and Hospitality Marketing

Chapter Copyright © 2009 by Nelson Education Limited. Responsible environmental marketingResponsible environmental marketing –the balancing of environmental initiatives and environmental communication in order to achieve sustainable competitive advantage Responsible Marketing of Tourism Contemporary Issues in Tourism and Hospitality Marketing

Chapter Copyright © 2009 by Nelson Education Limited A Model of Responsible Marketing Contemporary Issues in Tourism and Hospitality Marketing

Chapter Copyright © 2009 by Nelson Education Limited. Cause-related marketingCause-related marketing –Corporate philanthropy organized to increase the bottom line Cause-related Marketing in Tourism Contemporary Issues in Tourism and Hospitality Marketing

Chapter Copyright © 2009 by Nelson Education Limited Branding Approaches to Cause- Related Marketing Contemporary Issues in Tourism and Hospitality Marketing Table 13.2

Chapter Copyright © 2009 by Nelson Education Limited. Sport tourismSport tourism –travel away from a person’s primary residence to participate in a sporting activity for recreation or competition; travel to observe sport at the grass roots or elite level; and travel to visit a sport attraction Marketing Sport and Adventure Tourism Contemporary Issues in Tourism and Hospitality Marketing

Chapter Copyright © 2009 by Nelson Education Limited. Attractions (e.g., Hockey Hall of Fame) Resorts (e.g., golf and tennis resorts) Cruises Tours (e.g., Roadtrips) Events (e.g., Olympics) Five Areas of Sport Tourism Contemporary Issues in Tourism and Hospitality Marketing

Chapter Copyright © 2009 by Nelson Education Limited. Adventure tourismAdventure tourism –Brings together travel, sport, and outdoor recreation –Classified into “hard” and “soft” adventure Marketing Sport and Adventure Tourism Contemporary Issues in Tourism and Hospitality Marketing

Chapter Copyright © 2009 by Nelson Education Limited. Destination crisisDestination crisis –The result of external factors beyond the control of managers and authorities negatively affecting the appeal and marketability of a destination The Role of Marketing in Crisis Management Contemporary Issues in Tourism and Hospitality Marketing

Chapter Copyright © 2009 by Nelson Education Limited. Responding to crisis 1.Establish a crisis management team 2.Promote the destination during and after the crisis 3.Monitor recovery and analyzing the crisis experience The Role of Marketing in Crisis Management Contemporary Issues in Tourism and Hospitality Marketing