HOTO7004 Tourism Digital Distribution Strategies Assignment Sample
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Digital distribution Environment.
1.1. Target Market
The segment (persona) chosen in this study is middle aged couples who are intending to visit the Roman Baths and Georgian City of Bath. These customers are in middle income group, and both are employed in marketing, and would either be from England or from outside Europe.
This type of customers would love to tour specifically the city of Bath. The couple love their traditional foods and therefore, they would prefer one of the renowned international restaurants in the city of Bath where can get they preferred food choices. They would mostly be interested in a place that is central but which is more close to the Romans Baths and Georgian City of Bath.
The couples would also be interested in touring other tourist attraction in the city of Bath like Fashion Museum Bath, Holburne Museum, Pulteney bridge and would love a central place where they would tour the city of Bath.
These middle aged couples would not love to walk over long distances and would prefer to use taxicabs or public transport to tour the city of Bath. They would consider tour guides during their stay in Bath.
The city of Bath has several beautiful parks like Royal Victoria Park, and gardens (Orbasli, 2010) where couples would opt for picnic and where they can prefer to spend quality time together away from the hotel. Riding boat or punt down the river is one of the activities that most tourist visiting Bath love.
This customers would also prefer to spend some time riding boats during sunny days. Tourists visiting the city of Bath have loved taking a hot air balloon ride (Rodrigo, 2012). The hot air balloon ride provides a beautiful scenery of the city of Bath, River Avon and the surrounding rural areas.
These couples would like to spend the night time in a movie near their hotel. Centers like the Little Theatre is one of the centers well know for beautiful romantic films.
The are several factors that affect the choice made by a customer while booking a hotel to stay during holidays tours. These factors range from cost, services provided, distance from the tourist destinations sites (Soulidou, et al., 2018).
Baruca and Civre (2012), argues that their are attributes of hotel that contribute to the choices that consumer make when booking an hotel. According to them, factors such as hotel products, location of the hotel, offers and services at the hotel, quality of services, price and reputation are likely to influence the choice of the consumer to a greater extent.
The consumers in this case are mainly interested in Roman Bath and Georgia City of Bath, therefore they would prefer a hotel that is close to this tourist site. However, these couples would also love to visit other tourism sites within the city of Bath, and would love to spend more time away from the hotel, therefore they a hotel that is more central and close to Roman Bath and Georgia City of Bath would be more ideal for the customers.
The couple are also in middle income group, with mortgage they are currently paying, they are in a tight financial situation and would love to save every single coin. Therefore, offers on services would be of great deal to the couple (Baruca and Civre, 2012). The couples would love a romantic place to spend time away from work and family, therefore they would opt for the hotels that are renowned for providing best services for couples. These consumers love their traditional food, and this would be a major determinant when making their choice of hotel.
1.2. Principal – digital distribution.
The target customer in this case is searching for a hotel where they could spend time while in vacation at the city of Bath. This customers will opt for search engine as the easiest way to know the types of hotels in the city of Bath and the Kind of services that they offer. Google has a platform in their search engines (Durmaz and Efendioglu, 2016), that allows one to search for hotels and flights, and this allows travellers to be able to browse and book hotels using their phones or gadgets.
Therefore, we would create a campaign in the Google Ads for the location of our hotel, and the Ad extensions would be used to increase the likelihood of attracting clicks when customers are browsing. These extensions include sitelink extension (Apple, et al., 2019) that allows us to advertise various offers and users can be directed to the specific site of the hotel.
However, there are some consumers that prefer mobile apps to search engines while booking or looking for a hotel (Apple, et al., 2019). Therefore, we can develop mobile app for the hotel, where such customers can find the services offered and the offers provided by the hotel. The website of the hotel is also a good platform to reach the target customers and it can be made easily accessible by typing specific words in the search engine.
1.3. Digital Distribution – Channel evaluation.
The distribution channel is the medium that links the travellers or the tourists to the hotel and tourism business. Inventions and advancements in digital technology such as mobile apps, has changed how the tourism industry links to their customers (Camilleri, 2017). Some of the digital distribution channels that are currently shaping the tourism industry are the online travel agents and global distribution system.
There are a number of travel search engines that offer a wide range of tourism and travel services. These search engines enable the end user to search for cost and make comparison on prices and services. For example, the Booking.com, Hotel.com and Priceline.com are used by the online travel agents (Kracht and Wang, 2010).
The services, for example hotel or airline, are categorized to meet the exact search of the customer. Hotels may be categorized as 5 star, 4 star or 3 star while the airline services may be categorized as economy, business or first class, which make it easy for the consumer to make search.
The consumer can search the type of service that is available and the cost of the service and make comparison.
Tours and travel search engine have high quality of contact with the consumers, as they are developed that the consumers can receive feedbacks from time to time about the subject they searched for (Ghaith, et al., 2014). For example, when there are offers on hotel booking and services, the consumer can receive an alert on various offers available and whether the price has increased.
Search engines also makes it possible for customers to access online websites for different travel and tours companies, and also for different airlines. Therefore, the consumer is able to make transactions through these search engines.
The hotels or the travel companies have access to the travel search engines or online agents and are able to update or provide information of their services or customer profile. The hotel management also have control of their content and can regularly update on their services and offers (Paraskevas, et al., 2011). This is normally possible through the online travel agents who can grant access to the hotel management.
Customer profiles of each company are available in their websites and the customers can easily access them through the travel search engines. Booking through these search engines have been made online (Paraskevas, et al., 2011). Customers are to be able to book hotels, airlines, car for hire, through the company’s website available via search.
For example, a person may book an airline ticket, pay for the ticket and receive an electronic ticket which contains all the details of travel including travel time and destinations.
Global distribution systems is a network linking different travelling agents and enables them to be able to access services such as booking hotel, airline tickets e.t.c (Jovic, et al., 2016). The system has been in use for decades and it has been effective in providing travel services to the end users.
Customers (users) can use the system to book various tours and travel services like hotels, airlines seats and rental cars. Unlike the search engines that can be accessed by anyone with a mobile device or internet access, global distribution system are basically used by the service providers or agents who are signed into the system (Jovic, et al., 2016).
These agents can access different services offered by the hotels and the travel companies and sell to their clients.
Hotels and other travel companies provide the details of their services to the global distribution systems, and these are normally updated in their online booking website. The system as compared to the search engine is not directly accessible to the customers.
The customers can access the system through the travel agents who can sell the inventories of the hotels and travel industries to them (Nadra, et al, 2018). The customer base that global distribution system links to the hotel through the travel agency is wider, because all the travel agency across the globe are linked at a single point in the global distribution system.
In travel search engines, customers can book directly through the company’s website, however in global distribution system, customers for example corporate travellers, make booking through the travel agency. Customers who would like to use these platform to book for hotels usually pay agent fees, and the hotel also pays the fee for every room that is booked (Colombo and Baggio, 2017). Global distribution system also allows the hotels to provide customer profile on their websites.
The hotel management usually provide details of their rates, offers and services that meet their target customers to the global distribution system. Therefore every travel agent is able to access and make booking according to the services that meet their clients profile.
Unlike travel search engines that customers have direct access or control, in global distribution system, customers can only access the services in the system through the travel agents.
Travellers and customers can make booking through the travel agency who can access the global distribution system. On the other hand, hotels and other travel companies are able to connect to the global distribution system through the network providers (Colombo and Baggio, 2017).
The provider acts as an intermediary between the hotel and the global distribution system, and is responsible for connecting the hotel and the networks of the global distribution systems. The hotel therefore are able to manage the customer profile in the system and make any updates or changes through the property management system.
2.1. Loyalty.
In tourism and hospitality, customer loyalty is very important in this competitive industry, and can be defined as the ability of a customer to transact with the hotel and travel industry repeatedly without opting for the same service in another hotel or travel industry (Rahim and Gunlu, 2016). Hospitality and travel companies create loyal customers through several ways that ensure they are able to meet their customers satisfaction. They always ensure they maintain a connection with their customers by updating them on their offers and services. This ensures that the customer is always aware of the company even if they do not book, which increases their likelihood of booking at the hotel.
There are several models that have been developed to ensure customer loyalty in travel and hospitality industry and other industries. One of the models is financial value model. The financial value model can be divided into customer retention model, purchase model, customer acquisition model and the basket-size model (Markey, 2020). The customer retention models is aimed at the time the customer will spend while active to the company, customer acquisition model aims at getting new customers, purchase model aims at the number of times the customer will be purchasing from the industry and the basket-size model is based o how much the customer will be willing to spend in the industry. Another model is the functional value model. A study was done using Structural equation modelling to determine the corelation between customer satisfaction, perceived value and the loyalty of the customer (El-Adly, 2018). The model showed that factors such as price and quality affect satisfaction and loyalty of the customer. It was also concluded that functional value or perceived value such as aesthetics and prestige directly affects customers satisfaction and loyalty.
Travel and hospitality industries have developed loyalty programs to improve customer loyalty. According to a research done by Tanford, et al., (2016), on loyalty programs between 2000 – 2015, it was evident that customer loyalty is not constant across the travel and hospitality industry.
They argued that with the loyalty programs, some hotel and travel companies have been able to improve the loyalty of most of their customers, while other companies have experienced a fluctuation in customer loyalty. Customers are becoming less loyal even with the loyalty programs, as the hospitality industry is becoming more competitive with time (Tanford, et al., 2016).
Technology has given customers an opportunity to compare offers and services provided by different travel and hospitality industries. However, the COIVID-19 pandemic outbreak witnessed in 2020, made some hotel and travel industries across Europe to witness a high loyalty among their customers. According to an article by Wise Marketer, (2021), these industries applied new technologies that enabled them to witness the high customer loyalty during the pandemic.
2.2. How to Boost Loyalty.
Travel and hospitality industries have developed programs that has been very effective in boosting and ensuring customer loyalty. Research on hospitality industry has reported that there are factors that affect customer satisfactions, and there are things that hotels and travel industry can do to improve customer satisfaction and loyalty (Kandampully, et al., 2015).
Customers make decision on their continual stay at the hotel from the first impression, that is, this affect their consideration (Tanford, et al., 2016).
They will weigh on small details like how they are received in the hotel and the relationship or communication with the staff. Therefore, the hotel management can ensure that the check-in services and hotel-housekeeping are beyond customers expectations, and the staff are trained on how they can receive the customers. This is also applicable to other travel industries.
Management of travel and hospitality industries can also develop a database of all their customers, including the new customers. Through this they are able to record the preferences and the expectations of various customers that can enable them improve on their services. This will ensure customer satisfaction which translates to customer loyalty (Soulidio, et al., 2018).
Loyalty programs in hotel and travel industry has contributed to 18% loyalty of the customers or retention. The management after determining the preference and the expectations of the customers can develop loyalty cards, and new customers can be made known of the benefits of repeat service.
Online travel agents and other agencies provide for platforms where customers can provide their feedbacks on the services and their experience (Nadra, et al, 2018). Management of hotel and travel industry can develop a platform where the customers are able to give feedback during their stay or after their stay.
This can be through online platform, or through filling forms or through other means. This creates a platform for customer connection and it is key in improving customer satisfaction (Nadra, et al., 2018).
Communication is key to socialization and into developing relationship. The hotel or the travel management can ensure that there is constant communication between the customer and the staff, after booking and during the stay. The customer can always be engaged and enquiries made on their expectations and on they adjustments they would prefer to be made. This can affects, considerations, purchase and retention of the customer.
Advancement in technology such as mobile apps and social media, has influenced and changed how hotels and travel industry can relate to their customers, which has greatly affected customer loyalty (Apple, et al., 2019).
The hotels and the travel industries can create an online platform where customers can easily access their services such as booking of rooms and airline tickets. Social media platforms has also become a simple way which hotel industry can use to create awareness of their services and offers.
Having a profile of the hotel or the travel industry in facebook, twitter, instragram e.t.c., makes it easier for the company to reach a wide base of customers and meet their target customers. Google has also provided opportunities where these companies can use to advertise their services and offers. Through the google ads and google extensions, customers using the search engines can be directed to the hotel and the services they offer and to the specifics of the company.
Management of hotels and travel industries can also use other technological platforms such as emails to send electronic messages and notifications to customers who have made booking at the hotel. The emails and other social media platforms can also be used to send a thank you note to all the customers who have visited the hotel or the travel industry.
The hotel can also create a mobile app where customers can make requests, book for hotels and even provide feedback on the services they received. The social media platform and the mobile apps can be used to meet all the stages of customer journey including awareness, considerations, purchase and retention.
Another way that can be used to ensure customer satisfaction in hospitality and travel industry is by offering incentives to the customers. Incentives are key into turning guest customers into repeat customers. The management can examine each customer expectations and offer incentives depending on the expectations of the customer. The expectations of a couple is different from the expectations of a person on a business trip.
The incentives can range from discounts on food and drinks and offers on booking of rooms. Customer expectation is key in their purchase journey, and therefore exceeding these expectations is key to customer satisfaction and a step towards customer loyalty.
The management can consider factors like what might be the specific requests or expectation of the customer that the hotel or the travel industry might not have covered. They can also enquire with the customers, and then commit on resolving or meeting those expectations.
They may also make apology and assure the customer that it will be done. This they can follow with a message or email to the customer on the status of their request.
References.
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