Why do hospitality marketers influence elasticity of demand of individual tourism and hospitality firms?

Running Head : Hospitality Marketing /Demand Elasticity

How and Why Hospitality Marketing Influences Demand Elasticity

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How and Why Hospitality Marketing Influences Demand Elasticity

Competition in today 's market for tourism dollars is fierce Consequently , marketing by suppliers as a tool for influencing demand has become more commonplace due to the diversification of corporate interest in the industry . As such , the services of tourism marketing firms , even those that are small and independent , have a strong impact on demand and its elasticity . Demand has the ability to

affect corporate gains , profit and influence on market . Marketers affect not only their own bottom line but also play an important part in economic growth as well as foreign policy as it relates to travellers

Hospitality marketing is a rapidly growing industry due largely to the suppliers ' benefits : cost effectiveness , increase of overall occupancy and a spotlight on diversity . The net result is a collaboration of corporate interest in the tourism market with marketing strategies that benefit not only the industry as a whole but the hoteliers themselves and other suppliers , with quotient angle influence . Understanding how the role of even small firms influences demand and changes elasticity in the tourism industry is essential for creating effective marketing strategies

Hospitality Marketing and the relation to supply and demand

Influence on the elasticity of demand for hospitality services affects the growth of tourism marketing firms . In to effectively influence demand , the marketer 's main objective is a thorough understanding of the demographics , market capitalization and future trends on which demand fluctuates . When micro firms utilize this information with accurate industry forecasts based on an analysis of market trends , demand becomes a measurable component of the supply and demand equation

As defined by Tribe (2002 , 75 , price elasticity of demand is the measurement of the sensitivity of demand to a change in price . A compelling reason why hospitality marketers need to understand the concept of elasticity of demand is because it has an impact on which marketing strategy will be most effective . In to apply the right strategy and maximize profit , marketers should acknowledge that different market segments of consumers have different degrees of responsiveness towards their products . Having the ability to distinguish the difference between elastic and inelastic market segmentations will help marketing management maximize revenue (Hanks , 2002

The supply side of the equation , or the hotel /tourism service providers often makes gains in market share through the utilization of customer retention programs . These programs often defer profit return potential in the form of customer loyalty , price discounts and demographic insights . Analysis of the individual service sector - not commercialised but parametrical - results in an accurate assessment of market performance and forecasting . The pricing matrix used by individual tourism and hospitality firms and their inverse relation with the revenue context results in highly dependable forecasts and an accurate analysis . Pricing is dynamic due to environmental influences , both internal and external . Marketers view the future through the micro sector screen replete with...