Tourism and Hospitality Industry, Family Market - Essay Example

Critically Discuss Its Impact on Hospitality and/or Tourism Marketing Table of Contents Introduction 3 Importance of Family Market 4 Factors Affecting the Family Market 5 Life Cycle 6 Joint Decision Making 8 Influence of Joint-Decision Making From Different Aspects 9 Dependence Factors in Joint-Decision Making 9 Children’s Influences and Power Affecting Family Decision 10 Recognition of Children’s Preferences by Their Parents 12 Recommendations 13 Conclusion 13 References 16 Bibliography 21 Introduction Tourism and hospitality industry is regarded as one of the rapidly blooming industries throughout the globe. Today, tourism and hospitality industry contributes significantly towards the economic growth of a nation (Brida, Risso and Bonapace 2008; 178-185) Tourism and hospitality industry operating nationally and internationally are engaged in framing various marketing strategies that benefits the industry in the most favourable way (Middleton, Fyall, Morga and Ranchhod 2009). In the recent times, it has been apparently observed that family marketing has emerged as one of the imperative aspects especially in the tourism and hospitality industry. In this relation, there have been significant changes witnessed in the family decision-making procedure. Unarguably, there can be seen considerable impact of family members particularly the children on the overall decision-making procedure of the family in the tourism industry. Family has always been an important market segment which makes significant contribution in the growth of hospitality and tourism industry (Dumitrescu and Vinerean 2010: 757- 763). Nonetheless, the advancement in the society over the years has changed the concept of family marketing dramatically with unique attributes and preferences. Currently, the impact of families has been radically viewed to be influencing leisure activity decisions which has resulted tourism and hospitality industry to frame its marketing strategies along with adjusting different leadership styles according to the changing pattern of family. There has been significant growth in family holidays and vacation in the recent past years. Despite the economic challenges, the people in the society are willing to spend their holidays and vacations with their family by a considerable level (Wu 2013). Currently, with the modernization of families across the world, people are now relying more upon making collective decisions rather than placing priority towards making individual decisions. Hence, it can be stated that every member within the family including children as well as adults have become an important factor whose choices have become a vital matter of concern that needs to be taken into concern by the hospitality and tourism industry. Thus, this paper critically discusses the impact of family market on hospitality and/or tourism marketing. Importance of Family Market Family market is currently being gaining tremendous popularity especially in the hospitality and tourism industry. Families in social aspect can be defined as social groups that include at least of two family members. Generally, the concept of family can be articulated as a unit which comprises of one or more parents along with child or children. Thus, the family tourism includes family units and makes an active involvement in different forms of tourism related activities. Despite, the economic turmoil, significance of family tourism market cannot be underestimated. There can be identified many transformation in the modern family which acquires significant impact on the tourism industry. According to the report published by Office of National Statistics, it has been viewed that there has been substantial rise in the number of people living alone and also in the number of children living with their parents. It is further estimated these increasing numbers are likely to pace up in the later years to come (Robinson 2012). Hence, it is crucial for the tourism industry to duly recognize these changes as the influence of these significant changes is perceived to impose far-reaching impact on the family tourism market. Additionally, the factors influencing the vacation and holiday behaviour of families as well as the nature dealing with the family tourism provision are instrumental for better understanding of the market segmentation in the tourism industry (Kim, Choi, Argusa, Wang and Kim 2010: 308-318) ‘The core motive behind the family tourism market should firmly related with offering broad assortment of products or services in order to meet the discriminating needs of ever changing trends of family structures and values (Schänzel, Yoeman and Blacker 2012; Shaw 2008: 688-703). Factors Affecting the Family Market There are several factors that impose potential influence on family with respect to leisure activities. In this regard, the three imperative factors influencing family decision making include discount as well as attractive offers for families, security along with safety factors and timing during which the families may get involved with any holiday purchase. It is been expected that the proper understanding of the family decision-making procedure would significantly help the tourism marketers to frame customer-oriented marketing strategies including product decisions, promotional campaigns, price structures and distribution channels in order to reap maximum benefits from the growing tourism industry (Govers, Go, and Kumar 2007: 15-23). For instance, recently, Singapore Airlines have partnered tourism New-Zealand for promoting family holidays and adjusted its leadership styles dramatically with the motive of accomplishing its predetermined business targets (ASIA Travel Tips.com 2013). It is worth mentioning in this context that consumer socialisation trends also creates a strong influence on the tourism industry buying trends witnessed in relation to the family market. As a matter of fact, tourism offers wide scope for socialisation to families. It has often been observed that such tendencies create strong aspirations within families, either residing in neighbourhoods or within the family tree spheres, to decide upon tourism trips for socialisation purposes. The particular dimensions of sports tourism and festival tourism have been observed to be highly influenced by such interventions in the family tourism market (Kim, Choi, Argusa, Wang and Kim 2010; Bowen & Clarke, 2009; Wilson, 2004). Life Cycle Consumer behaviour has been significantly influenced by different aspects like consumer personalities and motivation. Apart from these factors, the relationship within families also imposes vital impact on the consumer behaviour (Kovalainen 2012: 1-94; Vyas 2010: 1-13). Currently, it is important for the marketers to identify the family structure and their consumption pattern along with adjusting their different leadership styles. In this similar context, individuals and families are closely related with life cycle which is often termed as the family life cycle. Family life cycle also impose significant impact upon the decision-making procedure and mutual consent between husband and wife. Generally, family life cycle passes through different stages that impose likely impact on hospitality and tourism marketing at large (Uzulens 2012: 1-64; Bellon 2001: 612-638). A few of the major stages relating to family life cycle and its impact on the hospitality and tourism industry have been described hereunder. Newly Married Couples It has been ascertained that newly married couples have better financial position as they does not have to spend much as compared to the couples having children. Contextually, these families typically engage themselves in making significant expenditure on leisure and entertainment activities including vacations and holidays. These families are further highly susceptible towards promotional activities. Furthermore, these families prefer for romantic and adventurous holidays packages. Young Parents When the first child arrives, the role of the parents is observed to be changing within the boundary of the family. In this stage, the arrival of the first child ultimately leads towards reduction in the saving ability of the parents by a greater level. This particular situation can often lead towards dissatisfaction among the husband and wife relating to their financial position (Su, Zhou, Zhou and Li 2007). At this stage the parents spending on leisure activities are often reduce and like to prefer relaxation holidays rather than adventurous. Mature Parents The financial position of the parents usually improves as the family grows older. At this stage, the earning of the family members substantially increases. However, their expenditure also increases with the growing consumption pattern. Additionally, at this stage, the parents often look for holiday packages such as activity holidays and sightseeing holidays. Mature Couples At this stage, the income of the parents continues to improve. On the other hand, their children also become quite able to influence the decision-making procedure at large. At this stage, the families prefer to take holiday packages with the children which primarily meet the expectations of their children at large. Married, No Kids Generally, couples who are married but do not have any child possess relatively high disposable income and also greater capability to spend more upon travel and entertainment than any other lifecycle stages. It is because they have fewer expenses and ample scope for more saving. Such families usually prefer to undertake vacations and holidays packages that provide them with relaxation. Senior or Retirees Senior or retirees have relatively low income. Such families spending generally rely upon the availability of their savings that they have accumulated throughout their life. Such families have more concern about security and affection which serve as the basis for their choice. They usually prefers for going on cruise and relaxation kind of holiday packages. Joint Decision Making Over the years, family decision making has considered to be an important factor dealing with consumer behaviour in every marketing aspect (Decrop 2006: 1-218). In the travel and tourism industry, families are viewed to be vital market segmentation. In the recent times, the importance of family travellers is being perceived as obvious, the hospitality industry has also been rigidly involved in developing products or services that are immensely appreciated by the collective decision made by the family members. Notably, family decision-making procedure is quite different and complex in comparison with the individual decision making process. Family decision-making procedure linked with travel and tourism is often related with high involvement decisions that functions more like a process than an event (Kim, Choi, Argusa, Wang and Kim 2010: 308-318; Kang, Hs and Wolfe 2003: 448-469). Influence of Joint-Decision Making From Different Aspects Concerning with the decision-making procedure, family members in the current circumstances play a decisive part in the form of initiator, influencer, decider, buyer and user (Körner 2010: 1-180.). In the past, it has been ascertained that husbands and wives have the most relative influences towards family decision-making procedure (Hsu & Kang, n .d.). Accordingly, it was postulated that there are three primary decisions making approaches like husband dominant, wife dominant and joint-decision making procedure between husband and wife (Mottiar and Quinn, 2004: 149-160). Further, it was identified that vacation decision making generally results from joint decision making which involves the decision making based upon joint perception of both husband and wife. Most of the decisions that are directly or indirectly related with the family are rarely based on individual basis, instead there pertain high degree of joint decision making in such matters (Williams and Burns 2000: 64-71). Dependence Factors in Joint-Decision Making There are various factors that determine the types of decision making within a family. These factors that influence the decision-making procedure either joint or autonomous largely depends upon family’s social class, life, cycle perceived risks and role orientation. For instance, middle class family primarily involves in making joint decisions than those of lower and higher class of families (Wang, Chen, and Chou 2007: 139-154). Accordingly, husband and wife within the family are most closely related with sharing of vacation decisions such as identifying problems, searching information and selection of destination. Nonetheless, husband and wife are regarded as the primary decision making bodies within the family (Todd 2001: 99-201.). It has been ascertained that children often have the relative influence on the joint decision-making procedure within the family. Additionally, children have crucial part in family decision-making procedure and their influence greatly varies on the basis of product categories, services and the stages of decision making. Moreover, 20-35 per cent of parents admitted that their children’s have significant impact in the choice of destination, accommodation, timing and activities (Wang, Hsieh, Yeh and Tsai 2004: 183–194) Children’s Influences and Power Affecting Family Decision The satisfaction of children by their parents is often highly rated in the current society. Owing to this fact, parents in most of the cases undertake the views of their children while making decisions related with their vacation and destination selection. However, few researchers have argued that children have only choice to make small decisions while the major decisions are made by the parents themselves (Ryan and Page 2000). Several marketing and consumer behaviour research studies advocated that children in terms of decision making concerning with vacation and holidays planning often exert substantial influence on the family decision-making. Nonetheless, tourism industry has largely ignored the children’s influence and power in family decision making and their impact on family vacation and holiday purchases. Previously, the tourism marketing strategies were predominately based on husband and wife ability to make effective decisions (Kiani 2012: 417-427). Unlike in the past, the increasing awareness of the children’s position within the family decision-making procedure has currently being paying much attention in the hospitality and tourism industry. It is quite significant to identify that child do possess considerable power to affect the product or the services that they consume in the modern day context, owing to which their involvement in family decision can also be recognised as quite effective with respect to the consumption decision that serves the need of the entire family members. However, the involvement of children in the family decision making greatly varies according to the types of products or services that are consumed by the family members (Kaur and Singh, 2006: 1-30). The power of children affecting family decision can further be varying according to their age status which is primarily sub-divided into three stages including infancy, childhood and adolescence. During infancy, i.e. within age group of 0-5 years, parents are usually concerned with the safety and health of their children when deciding upon the destination to be visited. Similarly, another stage can be ascertained with childhood, i.e. when the children are observed to be within the age group of 5-10 years. Notably, at this stage, the children are significantly influenced with advertisements that have the power to affect decisions of their family relating with destinations. Lastly, adolescents belong to the age group of 11-16 years. This group of children have often been observed to form their own opinion relating to the choice of holiday destinations and thus affect the decision making in the family (Bowen & Clarke, 2009). Recognition of Children’s Preferences by Their Parents Furthermore, children preferences with respect to holiday purchase may be identified into two major aspects. Responsively, in the first case, the children may have the tendency to indirectly influence the decisions made by their parents by simply stating their preferences. In relation, satisfying needs of the children can be viewed as a strong motivational factor that subsequently swayed the decisions relating to selection of destination and type of food which the children are accustomed with. In most of the circumstances, it has been ascertained that parents often place priority to children preferences even at the cost of enjoying less by the parents. Such indirect influence of children on the parent’s decision making is often perceived to be the most prominent relating with young children. Secondly, children may exert direct influence on the holiday purchase decision making made by their parents. The degree of direct influence on the decision making increases with the age of the children (Watne and Winchester n. d.). The direct influence of the children can be identified as their active participation in their parents’ decision making as active negotiators and as an agent. Moreover, the extent of children’s influence on parents’ decision making can be related with their greater exposure to emotional maturing and outer family background (Kaur and Singh 2011: 171-177; Calvert 2008: 205-234). Furthermore, parents often make holiday purchases in order to benefit their children and to ensure that their children experience is enjoyable (Blichfeldt, Pedersen, Johansen, and Hansen 2010: 1-24). Recommendations It has been identified that there has not much research and studies focusing on the importance of children’s influence on family decision-making procedure. Additionally, tourism and hospitality industry for a long time has ignored the importance of children decision-making in holiday purchases and selection of destinations. Owing to the increasing importance of children in tourism and hospitality decision making, it is suggested that tourism marketers should duly focus on framing marketing strategies that duly focuses on attracting children of different age groups. It is advisable that tourism marketers should emphasise more upon producing holiday packages that yield more fun to children and ultimately attain significant benefits in terms of profitability (Nickerson and Jurowski, 2000; 19-30). Conclusion Tourism and hospitality industry is currently being viewed as one of the leading industries across the globe. The success of tourism and hospitality industry has been largely based upon consumer decisions and choices. In the recent times, the significance of family based decisions has increased radically. Additionally, the marketing strategies of the tourism industry are now more focused on family based marketing along with adjusting different leadership styles. It has been viewed that the tourism industry are emphasizing more upon family market and has been involved in promoting products or services that are most appropriate to families rather than individual basis. The transformation in the tourism marketing strategies is accompanied with the alteration of family occurred in the past few years. Owing to these changes, the industry is more concerned about targeting the family market. Additionally, in order to address and reap the best benefits arising from these transformations, the industry is engaged in segmenting its market based on the family life cycle for meeting the needs of different customers belonging to different life cycle stages. It has been ascertained that customer belonging to different life cycle possesses different preferences and demands. Furthermore, it has been ascertained that joint decision making within the family predominately influence the holiday purchases at large. Traditionally, decision making was perceived to be dominant to husbands. Nonetheless, the women participation in making decisions has also emerged significantly with the changing role of women in the society. The recent marketing research also postulated that children have vital influence on joint decision-making procedure. For a long time, the influence of children on decision making has been ignored by tourism marketers. However, the recent studies identifies that the role of children in family decision making contributes significantly. With regard to the vacation decisions, it has been ascertained that the parents usually considers the preferences of their children. Children in the current context have potential to influence family decisions relating to the selection of destinations, accommodations and timings. 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