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Learning Objectives Chapter 12: Packaging and Programming. Define the terms packaging and programming. Explain the relationship between packaging and programming. List the reasons for the increased popularity of packaging and programming in the hospitality and travel industry.

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Learning ObjectivesChapter 12: Packaging and Programming

  • Define the terms packaging and programming.

  • Explain the relationship between packaging and programming.

  • List the reasons for the increased popularity of packaging and programming in the hospitality and travel industry.

  • Explain the five key roles of packaging and programming in marketing hospitality and travel services.

  • Explain the difference between packages developed by intermediaries and packages developed by others.


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Learning ObjectivesChapter 12: Packaging and Programming

  • List and explain four ways of classifying packages.

  • Describe the steps that should be followed in developing effective packages.

  • Define the procedures used to price packages.


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Packaging

The combination of related and complementary services into a single-price offering.

Programming

The development of special activities, events, or programs to increase customer spending, or to give added appeal to a package or other hospitality/travel service.

Definitions of Packaging and Programming


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Relationship of Packaging and Programming

Packaging + Programming

Packaging

Programming

  • Packaging without programming

2. Packaging and programming together

3. Programming without packaging





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Key Roles of Packaging and Programming Packaging and Programming

  • Smooth out patterns of business.

  • Improve profitability.

  • Assist in the use of segmented marketing strategies.

  • Bring together the components of the organization’s product/service mix.

  • Bring together related hospitality and tourism organizations into partnerships.


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Packages Developed By Intermediaries Packaging and Programming

Tour wholesalers/operators

Incentive travel planners

Travel agents

Convention/meeting planners

Usually commissionable

Usually bought through travel agents

Packages Developed By Others

Suppliers

Carriers

DMOs

Clubs

Special-interest groups

Universities

Non-profit groups

May or may not be commissionable

Can be bought directly from package developer

Differences in Packages That are Available to Guests


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Package Elements Packaging and Programming

All-inclusive

Escorted tours

Fly-drive

Fly-cruise

Accommodation & meals

Event packages

Packages with programming for special interests

Target Market

Incentives

Convention/meeting

Affinity groups

Family vacations

Special-interest groups

Four Ways of Classifying Packages


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Duration Or Timing Packaging and Programming

Weekends

Holidays

Seasonal

Off-peak

Arrangements Or Destination

FIT

GIT

Charter tour

Destination package (e.g., Europe or Hawaii)

Four Ways of Classifying Packages


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How to Develop Effective Packages Packaging and Programming

  • Include attractions or other demand-generators.

  • Provide value to the guest.

  • Offer consistent quality and consistency among the package elements.

  • Provide a distinct customer benefit.

  • Cover all the details!

  • Generate a profit.


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How to Effectively Price Packages Packaging and Programming

  • Identify and quantify the fixed costs.

  • Identify and quantify the variable costs.

  • Calculate the total package costs on a per-person basis.

  • Add a mark-up or margin for profit.

  • Calculate the single supplement.


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