Main Post 2
Restating Marketing Problem from Week 3
My problem relates to ease regarding marketing channels for American Express Travel using
emerging technologies and the challenges faced by hospitality industry in implementing
technology in marketing channel.
Summary of information that is MOST USEFUL in the report
American Express is more affordable and better than ever with rapidly evolving
technology. In comparison, higher discretionary revenues made it easier for more
Americans to fly during most of the time. New information systems have also enabled
organizations to service consumers in broader fields. On the other hand, uncertainty has
been encountered over the last five years by non-US people on inbound journeys, because
the value of the currency has equally fluctuated and the price for international travelers
has been unpredictable.
The internet as a marketing tool, a distribution platform and also a service delivery
platform has been the most important technical advancement in the tourism industry in
the past decade.
Online booking sites such as Expedia and Priceline have become big travel agent actors,
though aviation portals are also the preferred spot for many Americans to book flights.
Just before the time when many tourist operators started to deliver high-discounted online
sales offers, the utilization of internet booking systems grew. This pattern persisted over
the last five years to 2020, with several online booking services that allow customers to
register for e-mail lists to access discounted travel offers for limited time.
Included with technological developments impacting the hospitality industry are
computer systems that help financial and inventory controls such as compensation and
stock levels. Mixed drinks have been affected by automatic measurement devices by the
use of bar staff, while gaming consoles have been able to communicate both within and
around the world.
SPECIFICS from the report:
The report allows quantitative and qualitative analysis of data in order to address the questions
posed in our research problem. It supports the argument that technological advancements are
able to support marketing channels especially in this pandemic era and at the same time it faces
challenges and pose barriers in way of successful implementations.
Barriers to Entry Checklist
Competition High
Concentration Low
Life Cycle Stage Mature
Technology Change Medium
Regulation & Policy Light
Industry Assistance Low
The economies of scale in the tourism industry demonstrate the superiority of key players in an
industry. However, this will only refer to main players who wish to join a certain segment. There
are typically several smaller player niche opportunities. In general, there is a low degree of
market concentration, with an estimated 10.8 percent of the industry revenues by 2020 for the
top four companies. Both the rates of new patents and the concentration of patents in the market
are limited. This creates an atmosphere where the risk of disturbance caused by emerging
technology is minimal. Structural conditions promoting potential entrants emphasize this
technological pattern. A comfortable arrangement will lead to small entrants concentrating on
low-cost yet creative points of entry for the industry. In other markets, big operators may use
experience in other sectors to reach the market from a different viewpoint. The main industries of
this sector are heavily fragmented and thus the market focuses on key segments of the consumer.
This offers a competitive entry into lower end markets or into our innovation markets to pursue a
troubling direction.
As per the report, Traveler lodging, transport, food and beverage facilities, tourism, leisure, and
retail are main sources of income for the sector. The customer purchasing trends all have an
immense impact on these industries. Travel expenditure has risen in the last five years in tandem
with the stable overall economy which has increased the discretionary per capita profits of
business operators. The market rise of the COVID-19 pandemic is however projected to lead to
dramatic sales reductions in 2020 in accordance with the resulting economic slowdown. As a
result, market revenues are projected to slip by 9.1 percent annualized to $590.7 billion over the
five years to 2020.
Report contains significant figures about the predictive performance of the market which is
expected to rebound from reverse reversals in 2020 in conjunction with the coronavirus
pandemic over the next 5 years to 2025. In the next five years, the supply of income levels is
projected to rise as the customer returns to work worldwide. As a result of enhanced financial
protection, consumer sentiment is expected to return steadily, and tourism is expected to
increase. Furthermore, the trade-weighted index, with its main trading partners calculating the
worth of the US dollar, is estimated to decrease over the next five years. Thus, overseas travelers
would have comparatively more inexpensive travel to the United States. As a result, sales are
expected to rise by 10.6 per cent to $979.5 billion annually over the five years to 2025.
Nevertheless, until 2024, the pre-pandemic rate of market sales are anticipated.
Work Cited:
1. UWG Library | EZProxy Login. (2021). Retrieved 2 February 2021, from
https://articles.westga.edu:3511/download/us/en/industry/2002/1/0/pdf
