Tourism and Hospitality Products, Branding, and Pricing

Abstract

This chapter explores how marketers design and manage tourism and hospitality products. It begins with definitions for the terms “product”, “offering”, and “product mix”. It the chapter explains that the product is a complex concept that should be considered on three levels. These are the core, expected, and augmented product. Next, the product life cycle concept is discussed and how it is used by the tourism marketer to assess the development of tourism products. Next, the steps involved in the process of developing a new product are considered. In the second section of the chapter, the role of branding in the tourism and hospitality industry is discussed. The third section of the chapter considers the price component of the marketing mix. The factors that affect the pricing of tourism and hospitality products and the various pricing strategies available to the tourism and hospitality marketer are analysed. Next, several pricing approaches used in the tourism industry are considered. The chapter concludes by outlining the characteristics of tourism and hospitality products in relation to price. Last, the chapter’s in-depth case study demonstrates the principles of pricing as applied to medical tourism company MakeOvertour, based in Turkey.