1. Learning Objectives Chapter 10: Product Development and Partnership
Identify the four major groups of organizations in the hospitality and travel industry.
Describe the roles played by each of these four groups of hospitality and travel organizations.
Identify the trends among each of the four groups of organizations.
Identify five overall trends and industry realities.
Define the product/service mix.

2. Learning Objectives Chapter 10: Product Development and Partnership
Identify and describe the six components of an organization’s product/service mix.
Explain the types of product development decisions that an organization must make.
Define the term partnership and list the potential benefits of marketing partnerships to hospitality and travel organizations.
Identify the types of partners available to hospitality and travel organizations.

3. Major Groups of Organizations in the Hospitality and Travel Industry
There are four major groupings:
Suppliers
Carriers
Travel trade intermediaries
Destination marketing organizations

4. Categories of Suppliers
Provide services that travelers need at or between destinations
Cruise lines
Car rental
Lodging
Restaurants
Attractions
Casino operations

5. Categories of Carriers
Provide transportation for travelers from their origins to their destinations
Airlines
Train
Bus
Ferry services

6. Categories of Travel Trade Intermediaries
Reserve and sell the services of suppliers, carriers, and other intermediaries
Retail travel agents
Tour wholesalers and operators
Corporate travel managers and agencies
Incentive travel planners
Convention/meeting planners

7. Categories of Destination Marketing Organizations
4. Destination Marketing Organizations (DMOs)
Government and non-government organizations that market all the hospitality and travel services within their destination areas
National/Federal and State Tourism Marketing Agencies
Convention and Visitors Bureaus (CVBs)

8. Trends in Lodging Facilities
Chain domination
Increasing brand segmentation
Mergers and joint-marketing programs
All-suite/extended-stay hotels
Frequent guest programs
Special services and amenities

9. Trends in Restaurant and Food Service Facilities
Major restaurant-industry trends
Restaurant franchising
Co-branding
New foodservice locations
Increasing brand segmentation
Changing ownership of major chains

10. Trends in Cruise Lines Rapid growth in cruising
Creativity and expansion of target markets
Dependence on travel agents
Changing cruiser demographics
Entry of hotel/resort companies into the cruise business
Consolidation

11. Trends in Car Rental Companies
Sales concentrated among business leaders
Dependence on airlines and travel agents
Participation in frequent-traveler programs
New services

12. Trends in Attractions and Casinos
Theme Parks
Theme park business growth
Casino Operations
Growth in number of casino operations
Casinos take to the water
Casino resort diversification

13. Trends in Airlines Mergers and industry concentration
More regional and commuter airlines
Frequent-flier programs
Strategic alliances
Ticketless travel and e-ticketing
Changes in travel agency commission policies

14. Overall Trends and Industry Realities
More horizontal integration
More vertical integration
Introduction of a wide variety of new services, facilities, and travel alternatives
Great future opportunities for new services, facilities, and travel alternatives
Increasingly competitive industry

15. The Product/Service Mix
Staff behavior, appearance, and uniforms
Building exteriors
Equipment
Furniture and fixtures
Signage
Communications with customers and other publics

16. Types of Product Development Decisions
Organization-wide Decisions:
Width and depth of product/service mix
Improving or modernizing the product/service mix
Branding
Individual Facility/Service Decisions:
Quality
Range
Design

17. Partnership
Cooperative promotions and other cooperative marketing efforts by hospitality and travel organizations

18. Potential Benefits of Partnerships
Access to new markets
Expansion of product/service mixes
Increased ability to serve customer needs
Increased marketing budgets
Sharing of facilities and facility costs
Enhanced image or positioning
Access to partners’ databases
Access to partners’ expertise

19. Types of Partners Customers Organizations in the same business
Organizations in related businesses
Organizations in non-related businesses
Digital alliances