HOTO7004 Tourism Digital Distribution Strategies Assignment Sample
Introduction
Digital distribution of travel and tourism industries attract customers through the use of digital media, online travel agents and newspaper advertisements according to what proves to be the best for each organisation. The digital distribution channels tend to boost customer loyalty so that customers engage in business with the distribution channels on a regular basis. In this report, the target market, principle of digital distribution, channel evaluation will be elaborately discussed along with the implication for loyalty and ways to boost customer loyalty.
1. Digital Distribution environment
1.1 Target market
Chosen segment
The chosen segment of customers for the travel and tourism industries has a very wide range from the age of 18 years up to the age of 30 years including both males and females as the age group travels for educational or recreational purposes. The locations to be covered are situated all over Europe as the continent has many beautiful tourist attractions located in various countries such as France, Spain, Switzerland, Germany and others.
It is extremely important for the travel and tourism industry to cater to the needs of the chosen segment as it will help ensure customer loyalty. The travel and tourism industries also need to carefully identify the needs of the chosen group as it will help evaluate the competitor’s strengths and weaknesses and accordingly adopt a sustainable approach in terms of travelling (Camilleri, 2018).
Purpose of travel
The chosen segment mainly prefers travelling as a leisurely activity to take a break from the mundane life, however, the chosen segment also goes on educational trips and honeymoons (Ketter, 2020). Travelling is the best way to challenge oneself and venture on the path of self-discovery as one is required to embark on an adventure and test new limits every day.
However, it may be argued that travelling is a learning experience as the travellers learn a lot of historical and fascinating facts about the places they visit, get to learn a new language and try out new cuisines. On the contrary, travelling for some people may also simply be a recreational activity as everyone needs to relax and rejuvenate considering the stressful lives the people of the 21st century leads (Ketter, 2020). Travelling may also be the perfect way to celebrate a special occasion such as graduation or birthdays in a scenic location.
Activities at the destination
On the other hand, several activities that the travellers prefer depend on various factors such as the age, gender and personality of the travellers, while activities that require high energy are preferred by the youth. Women prefer shopping and tourists with an adventurous personality may try out several adventurous sports such as paragliding, scuba-diving and river-rafting.
People who travel for the sake of taking a break from the dull and boring lives usually go for sightseeing and enjoying the scenic beauty to soothe the eyes and take a break from the monotonous life (Scuderi and Dalle, 2018). However, the preference of activities also depends on the landscape of the tourist destination such as people usually basking under the sun when on beaches and attempting skiing when in a snowy region.
Evidence shows that tourists usually choose outdoor activities requiring moderate engagement when on a vacation and only cultural tourists choose indoors-intellectual activities (Scuderi and Dalle, 2018).
Booking behaviour
The booking behaviour of the tourists depend on the age group as youths who are very well acquainted with technology prefer booking tickets online while middle-aged and aged people put trust on travel agencies and feel safer when travelling with an agency. Customers also constantly look for discounts and prefer those companies that offer refunds on cancelling as people are always looking for affordable and cost-efficient options.
It may be argued that people usually go on trips when they have consecutive holidays particularly during weekends or festivals. The reviews of the hotels and the available pictures of the hotels also influence customers when the booking is done online as hotels with positive reviews immediately convinces people to choose it over a place with negative reviews (Omar, 2020).
Customers plan on visiting all the tourist attractions in and around the destination, therefore, it may be argued that accommodation places in close proximity to the tourist attractions allure more customers (Fong et al., 2018). Moreover, accommodations near restaurants offering a variety of cuisines with good taste easily available to the customers at any point of time also have higher chances of attracting customers.
1.2 Principal of digital distribution of hotel and options to reach the target market
The digital distribution principal of online reviews will be used by the hotels in order to reach the target market. Hotels need to focus on identifying their potential customers as it will help improving online reviews by strategizing policies catering to the particular needs of its customer services. Moreover, it may be opined that hotels offering comfortable stay with effective room service at affordable prices attract positive reviews which eventually help alluring more customers.
In post-covid times, proper sanitization and other safety precautions are an important criterion for reaching the target market as people choose hotels which are properly sanitized and ensure safety. Moreover, in today’s fast-paced digital age, information available on the internet about the hotel really affects the way it is perceived by the target market as the availability of more information leads to better reach.
Before the advancement of the internet, the availability of information was limited to what the travel agents provided and word-of-mouth recommendations from known contacts. However, nowadays, information is available on search engines, official websites and blogs written on tourism and people completely rely on them, while forming an opinion about the hotel.
Furthermore, it may be noted that first time travellers are more likely to look for information about a hotel than people who have visited before because they develop a sense of familiarity with the place (Morales, 2017).
1.3 Channel evaluation
Cost to principle
The hotels can increase their revenue by using social media marketing to advertise about the amenities and service they provide as it reaches a wide range of audience at a lower price. Moreover, the internet is the best platform to advertise a product or service since in this technologically advanced age the internet is considered to be a source of reliable information.
The hotels may include pictures of the rooms to increase their reach such as the picture of a sea- facing room offering scenic beauty to the people residing in it will instantly attract customers. However, it may be argued that the best way to attract customers is to promote discounts or offer free services such as spa and massage through online travel agents (Fredey and Madhok, 2020).
Level of control over channel
Hotels often have an official website where people are asked to provide their feedback as feedback helps the hotels to improve the services they provide. Furthermore, positive feedback on the official website also creates a good reputation of the hotel and eventually increases revenue by attracting more customers.
It may be argued that the hotels need to be transparent about the feedback they receive and display both negative and positive on the website as a complete absence of negative feedback will definitely raise suspicion. Therefore, the hotels need to consider the feedback as constructive criticism and try implementing the necessary changes in order to cater to the target market in a better way instead of being biased and deleting all the negative comments.
Hotel owners need to make travel agents promote their hotels by offering them commissions and also needs to talk about the discounts and offers provided to the customers through the social media websites as it will help in attracting more customers. On the other hand, it may be argued that social media handles of the hotels are also required to be controlled efficiently in order to increase the engagement of customers on the posts (Hashim et al., 2017).
It may be noted that the social media handles offer a high level of control to the customers as determined by comparing it with the levl of control that is offered by booking.com.
Quality of contact with customer
The quality of contact with the customers is often the deciding factor in why a customer will choose one hotel over the other as it is the quality of the customer services that makes people feel heard and valued (Bello and Bello, 2017). The hotels need to make the guests feel at home and offer them the opportunity to demand change if not satisfied with the services provided.
It may be opined that responsiveness and assurance from the customer service that the necessary changes will be made within a certain amount of time have a significant amount of positive impact on the satisfaction of the visitors (Ahmad, 2019). Hotels will need online travel agents who will be able to communicate with customers as it will help in maintain a positive quality of contact with customers.
Ease for booking for customers
The hotels need to be easily searchable online and the process of making reservations needs to be user-friendly so that even people not so familiar with technology find it easy.
In recent times, personalization has become a familiar tune, thus, it may be mentioned that chat based processes are beneficial to customers who require help or have unanswered questions. The satisfaction of customers is also linked to the sense of security and privacy the website provides which involves the safety of payments using credit or debit cards and the privacy of shared information such as passwords and pins.
It may be noted that bookings made directly through hotel websites and other travel agency websites occupied half of the market share only due to the enhanced customer loyalty and satisfaction (Xu, 2017). Travel agents may carry out the booking procedure so it becomes easier for tourists to book hotels in the travel destination.
Channel customers’ profile
In order to develop travel business effectively and efficiently, digital distribution channels may be considered as an important factor through which a particular business such as tourism may reach the target market. Two significant digital distribution channels are social media and email conversation through which the information regarding the tourism business may spread to attain the customer base (Katsoni and Poulaki, 2021).
According to recent scenarios, internet usage gradually increases day by day, more specifically, most of the people may utilize social media in daily life. In addition to that, distribution channel has a positive relationship with dynamic pricing strategies although it is not applicable for traditional pricing strategies (Ampountolas et al., 2019). Apart from this, the tourism industry may utilize travel agents through which the people may know about this travel industry.
2. Implications for loyalty
Definition
Customer’s loyalty refers to the willingness of customers to repeat business due to on-going positive relationship between a business and customers with an organization and brand, as a result, customer satisfaction is high as well as positive customer’s experiences may help to grow the tourism industry. More specifically, customers’ loyalty is to be considered as behavioural tendency where customers choose one’s products or services repeatedly over its competitors. Being productive to the customers from the tourism industry may help to increase the customer’s attention towards this tourism.
Customers’ loyalty gradually increases towards the tourism business when the tourism business has to implement strategic and unique pathways. Customers’ loyalty is to be considered as strong predictor of brand power in tourism industry that has provided more opportunities in enhancing visibility and establishing reputation (Nobar and Rostamzadeh, 2018). Additionally, loyalty is about the ability to trust the brand or the tourism industry which is to develop with the help of the tourism industry.
Customers’ loyalty has a significant effect on running business as the customers’ show loyalty towards the travel industry. Customers’ loyalty may set a profitable business as well as a successful business may depend on the customers’ trust over the business and their loyalty.
Financial value
Financial value defines the worth of an asset utilised by tourism industry as well as determine the industry’s financial performances, more specifically, stock analysis, investors and company executives of the industry have estimated the value of the tourism industry based on financial metrics. Financial value is created while the tourism industry has invested capitals at returns, apart from this, intangible assets are drivers of business long-term value creation in recent competitive market.
Tourism business is major engine of financial growth as well as an overall development in suitable manner to achieve long-term goals have been depended upon effective instrument for boosting Gross Domestic Product (Taqi et al., 2018). Customers’ loyalty may add financial value and generate the revenues as the customers have attracted more while the tourism industry has offered some discounts.
Customers’ Loyalty (CL) is not a new concept to flourish in the travel industry, however, customer oriented strategies and techniques have been helping to grow the business nowadays (Das et al., 2019).
Functional value
Though customers’ loyalty may definitely help the travel industry to build a successful business, still customers’ loyalty depends on the services provided by the travel industry. More specifically, if the travel industry may provide best services to the customers, therefore, customers also show trust in the travel industry. Variable quality of services provided by tourisms similar to facility, attraction and accessibility has a positive effect on the customers’ satisfaction which also reflects in the running business (Hayati and Novitasari, 2017).
Furthermore, good services provided by the tourism management may add the functional value which also includes a model of loyalty, therefore, it is clear that id the travel management effectively grow their business then customer satisfaction is necessary.
Polite behaviour with good communication skills may definitely help to grab the business opportunities by providing best services to the customers. In today’s digital world, digital payment with the help of mobile application has provided easy mode of transaction as online payment is secure and time savings nowadays (Yadav and Sethi, 2020).
2.2 The way to boost loyalty
Process of encourage loyalty and Potential changes to value offered to customers
In order to hold the position in the market, all the business including the travel regarding business may implement strategic ways to develop the business. An important function conducted by the travel industry is to attain the customers’ base, therefore, certain processes are implemented to encourage customers’ loyalty.
Apart from this, motorcycle riding facilities in travel such as Wild Atlantic Way, The Amalfi Coast Road and E65 Senj-Prizna which may attract the customers as the target market of this industry is middle age people.
On a contradictory note, it may be mentioned that effective customer service provided by the industry may help to clear the confusion or answer the questions of the customers at any time.
Mobile Instant Messaging application (MIM) may be considered as an Information and Technology (ICT) which provides facility to the customers as well as the travel management for effectively handling all the activities (Tseng et al., 2018).
The tour management may provide an auditing team during the travel which may help the customers to discuss regarding any issues during travelling and the auditing team may try to resolve the problems as early as possible to gain the customers’ trust.
By solving the problems of customers, the tourism increase industry’s loyalty towards the customers such as any problems related to fare which already paid by the customers as well as providing feedback facility related to management which make the customers’ journey more flexible.
A business may be successful if the tourism industry provides best services to customers with strategic planning and partnership on operational activities (Tarigan and Siagian 2021). Potential changes such as a discount facility may help the industry to retain a large number of target customers that means if the travel industry may provide discounts on rides then the target market may attract these facilities.
The tourism industry may arrange some cultural functions by the hotel management team during travel through which the customers may be satisfied and enjoy their free time.
Apart from this, bike riding facilities will be provided by the hotel through which the college and institution students in the target market may enjoy the leisure time in the hotel. Customer orientation plays an important function as the target market orientation has a significant result on customer’s satisfaction as well as customer loyalty (Yang et al., 2017).
Though social media may help to deliver the news regarding the discounts or the information regarding the tour facility as a means to raise awareness, still it has to be needed more actively with the help of advanced technologies to attract the target market. Weekly updating the website the customers may know the information regarding the tours and travel facility for retaining the target market.
Effectiveness of technology and social media
An effective and advanced technology may help the tourism industry to provide a significant result for controlling the managerial and operational functions by the management. Nowadays, Information and Technology (ICT) usage may help to develop the communication mode in between the customers and the management to improve the business. More specifically, ICT may be used for completing the administrative, accounting, financing, recording related activities which all depend on the powerful technologies nowadays (Singh, 2020).
ICT enhances the information and data security through which the tourism business has to improve and achieve the customer’s needs and provide the customer’s satisfaction. Advanced technologies may increase accessibility and collaboration through cloud computing which is essential to handle all the management activities and online booking.
Digital tourism businesses with the help of powerful technologies provide effective results through which the tourism has provided significant result to the customers within a short period.
Specific tasks regarding the administration activities in the tourism business may be successfully done by advanced programs operating with the help of technology such as computers and laptops. Social media is to be considered as a vast platform through which the information regarding the travel industry to the audiences or vice versa may be reached to successfully run the business.
Nowadays, social media such as Instagram, Facebook, WhatsApp acts as mediators who provide the news regarding the facilities as well as discounts which may grab the customer base effectively (Evans et al., 2021). On the other hand, it may be stated that e-commerce business may gain popularity with the help of customers’ loyalty as according to scenarios, customers are more dependable on online payment system.
Conclusion
From the above discussion, it may be concluded that digital distribution channels have helped to improve the running business with the help of television advertisement and social media. In addition to that, the customer’s loyalty and services provided by the tourism business are two important parameters to develop the running business.
Customers’ loyalty depends on the services as the tourism management may provide different types of facilities through which the customer loyalty gradually improves on the business.
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