Hospitality Marketing: A Retrospective Analysis (1960-2010) and Predictions (2010-2020) [Summary]
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An emerging major area of difficulty and opportunity for hospitality advertisers will be the development of new visitor markets. The number of Chinese and Indians traveling outside the country is forecasted to reach as great as 100 million by 2020. In both these countries domestic tourism is expected to rocket during the same period. The adaptation of marketing strategies to tap this national and international volume of travel will be an important element for longer-term growth. As the business problems of the next decade are starting to be addressed, the strategic use of standardized data sets and modern analytical techniques can help to resolve pressing questions. Hospitality advertisers today start to realize that engaging in successful customer relations must be the main focus. At least three things will need to change in order to do this. First marketing should not be considered as an expense but as an investment. This involves focusing on calculating returns on all marketing dollars spent, using ROMI as a primary metric for the measurement of marketing success. Second, intelligent marketers consider benefit per customer as the main objective, not just profits. Thirdly, the emphasis is on going from consumers to buyers. Lifetime value is a key measure of this. We expect to determine how much to invest in each relationship by estimating the present net value of future cash flows from each customer or customer account.