Hospitality and Tourism Industry: Augmented Reality in Marketing

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BEST PRACTICES OF MARKETING FOR

HOSPITALITY AND
TOURISM INDUSTRY
By: Shangzhi Improvised Donna Elaine O.
Research Charles Qiu by: Macatangay
Assitant Purdue Tourism
& Hospitality
at: Research Center Section: J2B

Marketers in the tourism and hospitality field are trying their best
to keep up with the most fashionable practices in marketing. At
the same time they eager to learn from the best practices in
other industries, struggling with matching the popular stuff with
the unique characteristics of hospitality products. But, under the
influence of social media, convergence of virtual and physical
experience, and rise of creative society, practitioners have
identified five marketing trends that may significantly influence
future tourism and hospitality marketing practices.

AUGMENTED REALITY IN
MARKETING
AR technology has already been used in
Augmented Reality (AR) technology could improving tourist experience, particularly
bring valuable opportunities for adding entertaining elements to the journey.
destination marketing. AR is a view of the AR technology will play a critical role in
physical world with additional information. fulfilling this goal by bringing a new concept of
Examples include a screen that could show experience to consumers so that the work of
a camera feed with digitally generated experience creation will be redirected. Tourism
content, and a mobile app that connects marketers will also need to reconsider or even
the physical objects to digital content. redefine the experience that destination
Attractions can also utilize this platform to offerings can provide. In the future, the AR not
increase its awareness. just enhances the visitor guide experience,
but also adds fun to the trip.

VIRTUAL REALITY IN
MARKETING
Application of VR will change the future of Williams and Hobson's (1995) research revealed that
destination promotion since potential tourists touristic VR environments have great influence on tourists'
planning behavior due to enhanced interactive experience
will have a more direct experience about the
and the feeling of immersion. In addition, VR technologies
tour than just reading other tourists' narratives in combination with multimedia can aid destination
or watching videos and photos. Virtual Reality marketers in creating memorable experiences. Huang et
(VR) is an immersive experience. The sense of al.'s (2016) study indicated that VR touristic environment
leads to higher travel intention because of greater
sight is very important in tourism, where a lot of
perception of autonomy, competence and relatedness
experiences depend on visual stimulation of the users. As this technology is gradually applied
(Guttentag, 2010). This feature makes across different domains of personal life and commercial
simulation of real world particularly valuable for activities, it will become a popular marketing tool for
destination promotion. tourism marketing practitioners in the coming decades.

VIRAL MARKETING
THROUGH SOCIAL MEDIA
Viral marketing has become a mainstream
First, viral marketing is based on the power of
marketing tool used by multinational
word-of-mouth (WOM). It is commonly
enterprises in different industries, including
recognized that WOM is much more effective
Nike, Unilever, and Volkswagen. The recent
than advertising in changing consumer's attitude
trend toward viral marketing also has been
and purchasing behavior and consumers are
fueled by the growing popularity of social
more inclined to accept information from social
media (Schulze, Schöler, & Skiera, 2014).
sources than from commercial sources (Smith et
Theories in social psychology and marketing
al., 2007) Second, social media that connect
provide reasons behind the success of viral
billions of consumers in the world enables the
marketing in contemporary market
influence of WOM to expand exponentially.
environment.

Recent literature shows that social media are


becoming increasingly important information sources
for tourists (Xiang, Magnini & Fesenmaier, 2015).
WOM is regarded as a particularly trustful and
reliable source of tourism information due to the
Third, contents used for intangibility of tourism experience.
contemporary viral marketing meet
consumer's motivation for sharing.

DONNA ELAINE O. MACATANGAY - J2B


BEST PRACTICES OF MARKETING FOR
HOSPITALITY AND
TOURISM INDUSTRY
By: Shangzhi Improvised Donna Elaine O.
Research Charles Qiu by: Macatangay
Assitant Purdue Tourism
& Hospitality
at: Research Center Section: J2B

Marketers in the tourism and hospitality field are trying their best
to keep up with the most fashionable practices in marketing. At
the same time they eager to learn from the best practices in
other industries, struggling with matching the popular stuff with
the unique characteristics of hospitality products. But, under the
influence of social media, convergence of virtual and physical
experience, and rise of creative society, practitioners have
identified five marketing trends that may significantly influence
future tourism and hospitality marketing practices.

HUMAN SPIRIT MARKETING


The concept of human spirit marketing was
proposed in the book Marketing 3.0. It is a To touch consumer's spirit,
response to the rise of creative society.
companies should first treat
Based on literature discussing the increasing
consumers as holistic human beings
need for spirituality and spiritual resources
in creative society, Kotler et al. (2010) rather buyers. And a holistic human
asserted that consumers today are not only has four components: physical part,
looking for products and services that a mind for independent thoughts, a
satisfy their needs but also searching for heart that feels emotion, and a
experiences and business models that touch spirit which is soul and philosophical
their spiritual side. Supplying meaning will
center (Covey, 2004).
become an important form of value
proposition in future marketing.

Human spirit marketing requires marketers to


target consumer's mind and spirit at the same
time to touch their heart. In terms of branding,
companies should attend to brand integrity
building in addition to brand identity and brand
image building. Brand integrity is about being
credible, fulfilling promise, and targeting
consumer's spirit.

COLLABORATIVE
MARKETING
Collaborative marketing is another important trend in the era of
Marketing 3.0, driven by the new wave technology of expressive
social media and collaborative media (Kotler et al., 2010). This
new wave technology increases the interaction opportunities
between firms and consumers, firms and firms, and consumers
and consumers. As a result, marketers no longer have full
control over their brands. They must now collaborate with
consumers and other organizations.

The concept of collaborative marketing has


been supported by both theory and
practice. The service-dominant (S-D) logic Collaboration is particularly important in
theorizes the joint role of organizations and destination marketing effort due to the fragmented
customers in the value co-creation process nature of tourism industry. Relevant studies
(Vargo & Lusch, 2004). Based on the value suggested that collaborative marketing is a
co-creation assumption, Vargo and Lusch feasible solution to various challenges in
(2004) suggested that companies seek to destination marketing (Wang & Xiang, 2007) and is
collaboration with other companies and effective in building consistent brand identity and
consumers to enhance marketing offering competitive value proposition (Park, Cai &
competitiveness. Lehto, 2009).

DONNA ELAINE O. MACATANGAY - J2B

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