E-Marketing
Subject is E-marketing.
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Executive summary
The increasing development of information technology especially the internet and the World
Wide Web has opened opportunities for the travel industry especially hospitality and tourism.
ICT has completely reformed the role of every player in this industry especially in the value
improvement process. Studies reveal that effective utilization of information technology is very
vital in the hospitality and tourism industry since it enhances competitiveness and development.
The technology enables the industry to create variations in their services as well as productions
and expenses.
The fast revolution in business environment as a result of advancement in technology requires
industries to develop relationships and cooperation and also be very creative ion the way they do
their business especially marketing. Internet promotes speedy reforms in the operation, provision
and structure of the travel industry. The structural changes in the travel industry entail enhanced
and speed response to communication and delivery of needs within their area of specialisation.
Consequently, business ought to choose the most appropriate e marketing strategy so as to
realize maximum profits within their area of specialization.
e marketing has therefore especially through the web gives rise to new and very appropriate
mode of creating awareness in the travel industry. The approach defines clearly the way
marketers embrace marketing mix variables so as to deliver services and to reach to their client’s
in a timely manner. The products of both hospitality and tourism are easily available on the
internet since the process is fast and easily available to all the internet users. However, the travel
industry is a very competitive and challenging industry. The clients in this industry are very
selective and always choose where to put their money based on what they prefer.
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The role of e-marketing in the travel industry
Advancement in the internet and how it is utilized has a direct impact on how e marketing
operations are carried out. The changes have created new ways of creating awareness to the
clients. Internet therefore reduces marketing costs and eliminates middle men in the marketing
process (Anchi, Konishi, Lei,Petalas, Stiegler, and Sugiyama, 2003. 300).
E marketing has increased competition within the travel industry especially through the
use of technology mediated channels. Travel industry has embraced technology through the
creation of internal and external value besides creating technology convergent strategies. In order
to achieve all this strategies, both hospitality and tourism industry have organized their resources
within knowledge and cooperation. E marketing has in turn enhanced exchange of information
and customization of products due to increased demand of internet economy (Rodríguez,
2003.45).
E marketing has influences how marketing mix operates to a larger extent. The
technology has influenced every aspect of service delivery and all the crucial stages involved in
the market mix. The technology has had a direct influence on product, price, promotion and
destination of the various products. Consequently, this process has reflected on how the
consumer desires to receive services which have become the main focus in e marketing
(Bindiganavale, Vijayaraman and Gurdeep, 2002.23).
Product means Customer value; Price means Cost to the consumer; Promotion means
Communication; and Place means Distribution, access or Convenience. E marketing has
therefore changed the way people, process and design is handled in the travel industry. The new
changes in the industry are very vital especially in relation to both hospitality and tourism
industry.
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Internet plays various roles in this field of hospitality and tourism in terms of marketing.
Internet is a medium that enhances exchange of information hence provides so many forums for
information exchange for marketing purposes. E marketing has the way both clients and travel
industry transacts business (Kotler, 2003.57).
Internet has enhanced market research especially information concerning marketing. The
stakeholders in this industry are able to understand and get the latest information on how to
improve on their business. The new marketing trends in the market are easily accessed and
embraced. The customers who are the main stakeholders in the travel industry are now enjoying
the services being provided. This is because e marketing has enhanced marketing customer
relationship through the implementation of marketing activities.
The marketers in the travel industry are now able to plan their activities strategically and
also enhance their networks with their clients. All marketing institutions provide distribution and
marketing services to their clients. E marketing has enhanced this through provision of a channel
upon which so many products can be displayed at the same time. In some instances, e marketing
creates connections for virtual business especially connections for small business (Porter,
2001.100).
E marketing has enhanced advertisement and public relations. There is a new channel
upon which clients are able to receive information. In addition, the clients are able to receive
information materials within a very short time. The development of the websites has enhanced
accessibility of information by the clients without having to spend a lot of money and time.
Travel industry main objective is to ensure that customers are aware of the prices being offered.
E marketing has enhanced and improved sales promotion and offering of prices. Internet has
become the preferred mode of communication of prices and new products to clients. Companies
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are now able to own their own products due to the connectivity through the database.
Furthermore, there has been enhanced ease of access and distribution of travel products. This has
now become the preferred mode of distributing new products in the market (Turban et al., 2000).
Comparison of Tourism and Hospitality industries
Similarities
Both tourism and hospitality industry use Social media as a strategy to create awareness
in the tourism industry. Social media are web based services which enhance online marketing.
(Yang, Kim & Dhalwani, 2008. 34). Hospitality industries use online marketing to develop
online communities. This has ensured that new business models are developed. Some of the new
business models which have been developed in the hospitality industry as a result of social media
include new product marketing channel (Chung & Buhalis, 2008.20; Ulusu, 2010.35; Yang et al.,
2008.67). This has enhanced the relationship between the consumers and the business people
through eliminating the challenges of both time and space (Bolotaeva & Cata, 2010.45; Sigala,
2003.70).
E marketing in the hospitality industry through social media and community marketing
has therefore enabled marketers to collect information concerning their current consumers and
the potential consumers from their database. Business people are able to tell the consumer’s
needs based on history of community utilization. The process also enhances direct feedback from
the consumers concerning their needs (Sigala, 2003.32).
Hospitality industries have achieved high levels of ownership through the internet and e
marketing. This is enabled through monitoring of every activity and evaluating all the needs of
the consumers. The information gathered through the social media and community marketing is
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used to improve on the products being delivered or even create new products based on the
client’s preferences. Social medias have therefore enhanced creation of awareness of the new
products in the hospitality industry hence target the new clients (Chung & Buhalis, 2008.56).
Online communities are very useful since they enhance the relationship between the
client and the marketers. This factor is further enhanced by the ability of the website to draw
consumers to its site through creation of value hence trust (Zott, Amit, & Donlevey, 2000.90).
The website ensures that internet users are able to interact with other users within the same
community and with the hospitality industry (Sigala, 2003.100).
Tourism industry has embraced social media as a form of e marketing to a very large
extent. The medium has had far reaching impacts in the tourism industry especially with how the
business communicates to its clients. The platform is easily accessed by everyone through the
internet. Tourism sector prefers this mode of communication since people are able to exchange
information more easily (Admin, 2010). The channel has enhanced the rate at which tourism
industries accesses customers and promotes its brands in an efficient manner.
Email Marketing:
Hospitality and Tourism industry are composed of some known clients. Email marketing
therefore entails creating awareness to such kind of clients through emails (Cho, 2010). Email
marketing has become a very important sector in the hospitality and tourism industry. The
approach has been received very well by both the marketers and the business people in the
industry. The process is cheaper as compared to the traditional forms of communication hence it
is able to reach to more audiences at the same time. The approach is used to send reminders to
clients hence is very important in converting audience into quick action (Chaffey, 2003)
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Differences in the application of e marketing mix strategies between Hospitality and
Tourism industry
Tourism Hospitality
Online marketing in Destination marketing
organizations
Tourism is an industry that relies largely on
information. Due to this fact, internet has
become the most efficient mode of accessing
and distributing information this industry.
Most of tourism industries around the world
are now appreciating the use of internet in
transacting their businesses. As mentioned
before in this study, tourism is an information-
intensive industry and Internet is the most
effective and efficient tool in information
exchange worldwide. Most tourism
organizations are by now familiar with the
Internet (Law, 2002b.34).
Tourism industry has therefore enabled
tourism destinations and businesses to
strengthen themselves in the current society.
The environment is so competitive hence each
and every player in the tourism sector has been
Hospitality industry has embraced e marketing
in a big way just like the tourism industry. The
industry has been branded the name e
travelling in the recent days. This is simply
because all its transactions are done online.
Some of the services transacted through online
services in the hospitality industry include
customer compliance and satisfaction, value
addition for both travel businesses and the
clients and privacy of the clients. The
upcoming hospitality industries have embraced
e marketing so as to remain competitive in the
fast growing hospitality industry around the
world.
E-Booking
E Booking has become the trend in the
hospitality industry. Consumers prefer doing
all their bookings online as compared to long
to the traditional forms which were very
expensive and time wasting. E marketing has
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forced to accept change.
The internet has is being used to provide
information to the clients about their
destinations. Even the smallest countries are
now able to market themselves through the
internet. Creation of awareness through the
internet has therefore benefited all areas of
marketing. Some of the fields within tourism
industry that have been enhanced include
market research and segmentation besides
effective utilization of the market mix
strategies (Liu, 2000).
Tourism has embraced e marketing in DOMs
as a tool for making discoveries especially in
the marketing strategies. This has been
enhanced through utilization of online
marketing and the use of social media to create
awareness. Most people are now aware of
tourism destinations through the social media
platforms like facebook and twitter.
Destination brand
Destination is the country whose main aim is
to attract visitors. Destination brand is
ensured that online booking is made efficient.
This has increased the rate at which clients do
their bookings. Each and every hotel industry
has now come up with bargain hunters
whereby people are able to book hotels online
without necessarily having to travel. This has
been enabled through creation of websites by
these companies. Travel agencies are
mandated with the responsibility of offering
these services in an efficient manner to the
clients. Rooms are made available online
hence clients can access them (Christian,
2001.12).
Search Engine Optimization (SEO)
Hospitality industries have embraced this
technique so as to increase the website traffic.
This is done through the use of the relevant
key words which are displayed in the content
of the company websites. (Cho, 2010). The
search engines are primary, secondary or
targeted search engine (Ledford, 2008).
Primary search engine is the main search
process in the Hospitality sector. The engine
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therefore very significant when it comes to
identification of this particular place by
tourists.
(World Tourism Organization and European
Travel Commission, 2010). The main aim of
destination branding is to promote a given
country positively. This has been enhanced
through e marketing in the tourism industry.
Tourism industry has embraced various
marketing strategies to achieve this (Cai,
2002.34). One of the most reliable modes of
creating awareness by the tourism industry
through e marketing is communication
accurately an authentic product to the
consumer through the internet. The moment
the visitors discover that this is not the case,
they refuse to come back. Tourism has cleverly
embraced e marketing by ensuring that the
branding process is very accurate, the one to be
remembered and also very useful to the clients
(Kolb, 2006).
Branding of the destination through e
marketing within the tourism industry has
avails most of the information about the
company to the website. (Ledford, 2008).
Secondary search engine on the other hand
entails dealing with smaller information which
targets smaller groups of people. The process
is not very specific (Ledford, 2008). Targeted
search engines in the tourism sector deals with
specific topics within the e marketing
(Ledford, 2008)
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focused on making people value the
destination of tourism. This is through audio
visuals and communicating about the brand
(World Tourism Organization and European
Travel Commission, 2008).
Theories to Explain Participation in e marketing by travel industry
Economic theory
E marketing has an economic power due to its ability to enhance relationship between
marketers and clients (Hagel & Armstrong, 1997.89). Due to the fact that clients who use
internet to access services comprise of consumers who have interest in specific products,
consumers will only purchase products from industries with which they have trust in. consumers
therefore contribute to increased profits for any particular industry that deals in travelling
services. Consumers are now able to access more information compared to before hence their
ideas are very important in enhancing product development and advertisement. (Butler,
2001.78). According to research, economic theory clearly explains participation of both clients
and industries in online activities (Gu & Jarvenpaa, 2003.29). According to Butler (2001.73),
resource based model that entails perceived value is realized if the consumers hope to get more
value from a service as compared to resources spent. The perceived benefits are therefore the
information that is provided by others. Consumers sacrifice their time and money to receive
these benefits from the travel industry. The moment the benefits gained go beyond the perceived
value, then the clients increase in number hence profit to the industry. Similarly, according to
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Gu and Jarvenpaas (2003.12),consumers will only contribute to the industry if the perceived
benefits exceed the costs and are sure of receiving more tangible benefits as compared to
intangible as such, industries ought to focus on increasing the levels of benefits so as to gain
more clients through e marketing (Barnett and Standing, 2001.34).
Social theories
Social theory involves reciprocal interaction between the clients and the industry.
Individuals within this arena expect to receive some form of rewards. There are two forms of
social theories thus the social exchange and the social identity. Despite the fact that participation
in the process of marketing does not necessary lead to benefits to the clients, they only want to
receive reciprocal interaction from the industries (Rayport and Jaworski, 2001.56).
Summary of findings and Conclusion
Summary of the Findings
E marketing leads to flexibility in the marketing structure. The success of any business
therefore relies upon quick response to changes in technology within the industry so as to meet
the needs of the clients. Information technology therefore has to be utilized so as to deliver the
requirements of the clients. Use of the internet has enhanced interaction, efficiency and
competitiveness with the tourism industry.
The new economy is changing the way distribution of products and customer behavior
used to happen. The main concern of most tourism industries is how to change from the
traditional way of doing business to a more advanced and acceptable form. It is undoubtedly
clear that this concern has been addressed by the change in the internet hence e marketing
(Soteriades, 2002.47; Siegel, 2003.56). It is very evident that only strategic marketing will be
able to promote the travel industry through embracing the internet. Tourism has approached this
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aspect by appreciating the fact that internet offers every tool that is very relevant in every market
and business.
E marketing is not an activity that can be developed independently and implemented
separately. The technology has to be taken as a new way of doing business that is there to serve
the current and also future needs of the travel industry.
Conclusion
Hospitality industry and tourism industry have both embraced e marketing as a form of
doing business. The two industries converge at some point especially in the way they create
awareness to their clients. In both industries, the main aim is to attract visitors from within and
outside their destinations. However, the two companies differ to some degree in the way they
utilize technology. Hospitality industry is concerned to a larger level with bookings whereas
tourism industry is concerned with marketing their destinations. Tourism industry is therefore a
key player in e marketing hence the largest consumer and user of e marketing technology. The
services advertised by tourism industry thorough e marketing range from branding to marketing
their destinations.
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