chapter 10

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Chapter 10

Product Development and Partnership


Major Groups of Organizations in the Hospitality and Travel Industry

Suppliers

Carriers

Travel trade intermediaries

Destination marketing organizations (DMOs)

There are four major groupings:


Figure 10.1 The groups and sectors of the hospitality and travel industry.


Figure 7.13A Trends in supplier and carrier sectors.


Figure 7.13B Trends in supplier and carrier sectors (continued).


Figure 7.13C Trends in travel trade intermediary and DMO sectors.


Figure 7.13C Trends in travel trade intermediary and DMO sectors (continued).


Overall Trends and Industry Realities

a. More horizontal integrationb. More vertical integrationc. Introduction of a wide variety of new services, facilities, and travel alternativesd. The Internet’s major impact on all groups and sectors of the industrye. Increasingly competitive industry


The Product/Service Mix

1. Staff behavior, appearance, and uniforms

2. Building exteriors

3. Equipment

4. Furniture and fixtures

5. Signage6. Communications

with customers and other publics


Types of Partners

Customers

Organizations in the same business

Organizations in related businesses

Organizations in nonrelated businesses

Online alliances


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’ customer databases

Access to partners’ expertise

chapter 10

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