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23-Hospitality _ Tourism Products.ppt - Hospitality _ Tourism Products

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									 Hospitality &
Tourism Products
                                  Case Study
In the mid-1970s, Ian Schrager and Steve Rubell opened Studio 54, a New York dance
club that attracted celebrities like Andy Warhol, Calvin Klein, and Cher. The college
classmates and business partners became as famous as their clientele and opened a
series of high-profile restaurants.

However, when the dance-club fad faded, the partners decided to look for a new
direction. They chose to renovate a hotel. Schrager realized that the operation of
nightclubs and hotels was somewhat similar. “They are both hospitality businesses,” he
said. “They have the same goal: to take care of guests.”

With its emphasis on high style and economy, the first hotel, the Morgans Hotel, was a
hit. It set a trend toward boutique hotels that served as a place to meet business
associates and friends – and a place to be seen. It was not just a facility that provided a
shower and a bed.

IN YOUR JOURNAL…

What might be some similarities between running clubs and hotels?

What services could a smaller hotel offer to attract guests that bigger hotels cannot?
Fill In the Countries…
                   Defining Products
   Hospitality and tourism products, like products in
    other industries, are both goods and services
    that have monetary value.
       Goods are tangible items that you can touch, smell,
        see, or taste.
       Services are intangible things that people do for each
        other.
            They are difficult to sample before buying and involve
             experience, emotion, and memory.
       In hospitality and tourism, though, goods and services
        are often intertwined.
            Example: Tourism offices provide information about local
             sights, accommodations, restaurants, etc., but they also sell
             informational brochures and maps.
     Goods & Services Continuum
        SERVICES              GOODS



   Travel information      Brochures/maps
   Serving food            Food
   Transportation          Car for rent
   Booking                 Room
    reservations
   Tours
   Entertainment
             Variety of Products
   Within the hospitality and tourism
    industries, there are hundreds of goods
    and services that can be sold as stand-
    alone products or can be combined with
    other goods and services to create a
    package.
       Hospitality products include both lodging and
        food-service establishments.
       Tourism industries include transportation and
        activity options during travel.
                     Product Levels
   At the heart of any good or service is the core product –
    the main product that the customer buys.
       Example: a customer who books a night at a B&B is buying a
        core product – a bed in which to sleep and breakfast to eat in the
        morning.
   Facilitating products are goods or services that aid in
    the use of a core product.
       Example: at a lodging property, facilitating products include
        parking facilities, public telephones, and check-cashing services.
   Supporting products are extra goods or services that
    accompany the core product to add value or to
    differentiate it from the competition.
       Example: at a B&B, supporting products may include afternoon
        tea, a hosted social hour, or turn-down service.
               Product Mix Sample
   A company’s product mix is the total
    assortment of products that a company makes
    or sells.
       Example: Marriott offers a complete line of hotel
        products to suit the needs of diverse travelers from
        luxurious full-service hotels and resorts to all-suite
        hotels and extended stay facilities.
            Marriott also offers facilitating and supporting products such
             as bell staff to assist with luggage, valet parking, concierge
             service, business services, health clubs, restaurants, express
             checkout, conference services, and frequent guest programs.
                       Summary
   Goods are tangible items that you can touch,
    smell, see, or taste.
   Services are intangible things that people do for
    each other.
       They are difficult to sample before buying and involve
        experience, emotion, and memory.
   There are several levels of products.
       At the heart of any good or service is the core
        product, which is the main product that the customer
        buys.
       Facilitating and supporting products may accompany
        the core product.
   The product mix is the total assortment of
    products that a company makes or sells.
Asia Answers
               Tourism in East Asia
   East Asia consists of: North & South
    Korea, China, Japan, Taiwan, Hong Kong,
    Macau, and Mongolia.
       This region had the greatest growth in
        international arrivals of tourists in the 1980s
        and 1990s.
            Primary reason: opening of China to mass tourism
             in 1978
                 Japan and Hong Kong serve as gateways into China,
                  and visitors to China normally combine their trips with
                  visits to other countries in the region.
               Tourism in East Asia
   East Asia is very diverse economically and
    geographically.
       It contains one of the most successful
        industrialized countries in the world (Japan), a
        number of growing newly industrialized
        countries (Hong Kong, Taiwan, and South
        Korea), and a developing country (China).
            China’s economy is growing the most rapidly,
             which is resulting in dramatic economic changes in
             the country.
                 The most significant feature of tourism to East Asia is the
                  opening and development of tourism to China.
           Thought Questions
1.   East Asia has a much higher percentage
     of male visitors than female visitors.
     What factors might account for this
     situation?
2.   South Korea has the lowest percentage
     of business arrivals of all the countries in
     East Asia. How would you explain this?
                 Journal Activity
    Think of two (2) of your favorite
     restaurants, and determine what they offer
     at the different product levels.
        For each restaurant, list at least two (2) core
         products, five (5) facilitating products, and five
         (5) supporting products… as shown below.


RESTAURANT #1:
CORE PRODUCT       FACILITATING PRODUCT   SUPPORTING PRODUCT

								
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