Marketing theory and branding in tourism sector hotels and airlines

Branding in Tourism

The travel, tourism and hospitality industry is a constant challenge for the field of marketing. Because the competition is so strong throughout, it is hard for a company to build a base and maintain its market share. With so many leisure time choices available, customers are free to use their leisure dollars on many pursuits. This makes the market very difficult for those involved. An added difficulty is establishing a brand, and particularly a brand image, that survives disgruntled customers, and becomes better because of those very customers. One company involved in establishing a consistent brand image in this industry is the Royal Caribbean Cruise Line. If an individual wants to spend vacation time on a cruise, they have many choices, and Royal Caribbean has had to develop and maintain an image that makes it the carrier of choice. It has done this effectively through many traditional means, but this study will employ attitude accessibility theory to see if Royal Caribbean is establishing its brand in such a way that it creates the positive image that people need to see in a carrier. This study will examine marketing in the travel and tourism industry, how it has been applied to branding, and finally how it is used by Royal Caribbean. The specific device of branding is also explored in depth from its general use, to how it specifically employed by Royal Caribbean. Finally, recommendations regarding how Royal Caribbean can better use brand image are cited.

Table of contents

Introduction 4

Purpose 4

Topic Importance 4

Attitude Accessibility in Branding 5

General Overview of Branding 5

Importance of Branding 7

Overview of Brand Image 7

Royal Caribbean 8

Attitude Accessibility and Royal Caribbean 9

Recommendations 11

Conclusion 13

References 14

Branding in the Tourism Sector

Purpose

This report is based on how the tourism industry markets its products; specifically how products, or companies, are branded. The company chosen for this review is Royal Caribbean Cruise Lines. The focus needed to be a company that is known around the world, and a company that evokes an image based on the brand name or symbol. The marketing of this product is significantly affected by how the brand is perceived by the public. This report will detail how branding is affected by customer attitude accessibility, and how Royal Caribbean has used this concept to make sure that their product receives the most value from recognisability and public perception of the name.

Topic Importance

Marketing a product is one of the primary determinants of whether it will succeed in the industry or not (Srinivasan, 2009). The specific marketing approach depends on what the goals of the organization are and what type of industry it is. In the tourism industry, customers need to be able to see what the company is offering; they also have to trust the company. To do this, a company needs to build up its brand (eg, its name or symbol). The importance of the topic lies in the fact that detailed reports with regard to how companies accomplish this are almost nonexistent. The research is clear about what a company can do, and what some companies have done, but branding research in travel and tourism appears to be a seldom researched topic. It is necessary to widen the scope of the scholarship in this area.

Attitude Accessibility in Branding

The theory chosen for this report is attitude accessibility. With respect to branding, it is a very important concept. Companies want customers to have an immediate positive image arise when their brand is mentioned, in whatever context (Grant, Button & Noseworthy, 1994). Royal Caribbean has spent millions of dollars developing such a brand.

The specific theory chosen relates well to brand image. Attitude accessibility is about the image a specific product name or symbol evokes in a potential customer. Luczak, et al., (2007) relate that;

"The theory of attitude accessibility suggests that the more salient the brand attitude, the more likely that attitude will be used in the creation of a consumer's evoked set. The positive attributes of a brand or brands in a co-branding strategy can result in the consumer electing to include a particular product in his or her evoked set and ultimately lead to the purchase of that product."

For the purposes of this report, a customer hears the name "Royal Caribbean," and the name itself gives the individual a specific set of thoughts. The company must conduct its marketing strategy in such a way that this happens because "These attitudes are used in interpreting and evaluating specific brands and manifest themselves through consumers purchase behaviours" (Luczak, et al., 2007). However, in order to continue this discussion, the concept of branding must be understood in greater detail.

General overview of branding

The word branding is derived from the practice of ranchers marking cattle so that it was possible to tell which ranch the animal belonged to. This concept has morphed over the years to encompass all the methods a company uses to distinguish itself from the competition. However, the basic distinction is the same; a company needs a brand to ensure that it is easily distinguishable from the competition within its industry.

A company can establish its brand in a variety of ways in order to accomplish its goals. The focus of the company determines what it will concentrate on. The first possibility that a company can use is to establish brand equity. As the term "equity" implies, this has to do with the ability of the company to make money from their brand. This can be done because the brand has well-known quality or is very recognisable. The second type of branding has to do with the loyalty individuals have for a product or company. Many times a person will use the same detergent, travel agency or hotel that their parents used. Loyalty is something a company establishes over time that often will shield it from the vagaries of human choice. People will often choose a brand because they have always used it, even when another, that is just as good or better, is cheaper. The third aspect that companies use when discussing branding is image. This the "The impression in the consumers' mind of a brand's total personality (real and imaginary qualities and shortcomings). Brand image is developed over time through advertising campaigns with a consistent theme, and is authenticated through the consumers' direct experience" (Business Dictionary, n.d.). The image that a company has is basically the culmination of all of its other branding efforts. It has to with both loyalty and the equity that the brand has built up with its customers over time. These are all very important components of branding, but how this particular concept affects a company can be different depending on how it is used.

Importance of branding

Every business realizes that how the public perceives them is important, but it is of the utmost importance in the travel and tourism industry. Companies are built and destroyed depending on how they are perceived by the public because there is always another hotel, airline or cruise company that can be used when planning a trip. It does not matter how glossy the photographs or intriguing the commercials are when a close friend or relative had a bad experience on a particular ship. It is actually not all that important for some industries, but the hospitality industry is flush with other entries that are waiting to take market share. Having a good name means that revenue will increase because people who believe in the brand will tell others of their good experience. In the same vein, if people are having bad experiences, they can definitely help sully a brand. This has the effect of taking away revenue, and yielding market share to competitors.

Overview of brand image

As mentioned earlier, brand image is "the company's personality" (Business Dictionary, n.d.). In much the same way that a human personality is developed throughout the lifespan a company's personality is developed through the years of business environment which it has gone through. The company comes to life as an unknown entity, and it eventually grows through its perceptions and those of its customers. As the company is growing, they have to make sure that a positive image is had by a majority of their customers, so that they can help develop that image. In the travel industry, people will build a positive image around such items as on time delivery (of the service), a pleasant experience, the attitude of the employees they meet, the price of the product, and whether they were satisfied with the overall experience. It is difficult to monitor every experience that an individual has, but it is important to try. As the authors of one study said "image is everything" (Hartley & Morphew, 2008). This has to be the continuous mantra for a company; especially one that is engaged in a public service such as travel and tourism.

Royal Caribbean

The company that was chosen for this exercise is Royal Caribbean Cruise Lines. Of course, it is a large company with many boats plying the seas all over the world, but they have a distinct need to maintain their image in one of the most competitive markets in the travel and tourism industry. Royal Caribbean is a premier carrier, but they have several competitors (Norwegian and Carnival among others) who are always available to grab market share where Royal Caribbean loses it.

The company was started in 1968 by three Norwegian shipping companies (Royal Caribbean, 2011). The original stated desire of the company was the same then as it is now "to empower and enable our employees; to deliver the best vacation experience to our guests; thereby generating superior returns to our stakeholders; and, enhancing the well-being of our communities" (Royal Caribbean, 2011). This vision has made the company one of the largest cruise lines in the world.

The first ship to leave dock for the company was the "Song of Norway" which was launched in 1971. Since that time, the company has launched new ships almost every year since 2000, and they have added amenities and destinations to continue to add service to their customers. The company president relates that

"Our brand also has experienced significant growth internationally. Visiting 280 ports in 81 countries on six continents, our ships are visiting more worldwide destination than ever before. We have a record eight ships in Europe this summer; Legend of the Seas sails year-round in Asia, and exciting itineraries and cruise tours in Australia and South America" (Royal Caribbean, 2011).

Royal Caribbean has continued to try and build its brand via traditional means, but they could do better work in some areas that could possibly add market share to their line.

Attitude Accessibility and Royal Caribbean

As expressed above, the concept talks about how a person sees a particular product when they are asked about it, and also how quickly they are able to develop this association after they are asked about the product (Ajzcen). Of course, if a person has already used the service (in this case taken a Royal Caribbean cruise), then they will have either a positive or negative reaction based on that experience. However, the majority of people develop the attitude they have for a product like a cruise line based on secondary, or sometimes tertiary, knowledge. A person will see an advertisement or the cruise line and what they see will influence them one way or the other. Maybe the person wants to take a family cruise and that individual is positively influenced by the images they see on the screen. Another person, that does not like cruises or water, will probably not have the same reaction. However, the company has to understand that not every person is going to have a favorable view of their company no matter what marketing strategy is used.

So, the company first has to determine its market segment. Branding does apply to the general public, but it specifically applies to the public that is going to use that service (Edgell, Ruf & Agarwall, 1999). That segment of the population, for Royal Caribbean, is the people who are likely to take a cruise and wants to go to a destination that Royal Caribbean serves. The advertisements, experiences the potential customer hears about from others, web information, etc. has to create such a positive impression in the person's mind that when they think about Royal Caribbean Cruise Lines, they always have a good view of the product.

Royal Caribbean also has to be seen as a superior product to that of other companies within the same industry. Since there are many different cruise lines which a person can choose from, Royal Caribbean has to be able to prove their leadership in the category, However, because it is a large industry, Royal Caribbean may want to choose a segment that they are going to focus on. The company has done this by providing premium cruises to well-traveled destinations around the world. Whenever people are asked about their perceptions of Royal Caribbean it will probably be, mainly, from the advertisement which show immense cruise ships going to prime destinations. The company has decided that it wants its primary business to be with people who are not afraid to spend a lot of money on a vacation to a destination that will be well-peopled with others just like them. Of course, this means that they may not be the favorite choice of those who want something like an eco-cruise to an exotic, out-of-the-way destination, but as long as they are able to maintain market share in their chosen segment, they are going to be fine.

Another aspect of brand image as seen through attitude accessibility theory is that a customer has to be able to access images of the product. In this area of marketing, Royal Caribbean has done well. The cruise line offers different advertisement packages depending on the time of year and the major preferences of their audience. They also have a large presence on the internet that assists them in this undertaking (Mulholland & Cachon, 2009). The company will advertise differently in Australia than it does in the UK, both on the web and print media, because the average citizen is different, and they are in different hemispheres. Royal Caribbean extends most of its money to advertise to specific areas when they are in the midst of the colder cycle of their climate. This makes sense because a cruise liner can take its passengers to a warmer destination. This is probably where Royal Caribbean does the best job. Often prices are discounted and a lot of advertisements are run during the colder times of the year (Royal Caribbean, 2011). This should add to the companies perception among people via attitude accessibility.

Of these three areas, it seems that Royal Caribbean is doing very well flooding the advertising market and determining its market segment, but they could do better if they want to expand that market segment. Having good performance in some aspects of branding does not mean that a company will continue to do well. However, with a few easy marketing upgrades, Royal Caribbean could easily expand its market.