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Marketing on Hospitability Industry in Thailand Overview"Literature Review" Chapter

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¶ … Marketing on Hospitability Industry in Thailand

Overview of Eco-Marketing on Hospitality Industry

In the contemporary competitive business environment where a substantial market share has become one of the important strategies to stay in business, increasing number of businesses are using eco-marketing to achieve competitive market advantages. However, global sustainability awareness has made large number of consumers to be selective in the product they consume because many products and services have been linked to health outcomes. In other word, consumers' attitude towards environmentalism has become a global phenomenon where businesses have risen to seize the opportunities to respond to environmental challenges by adopting the eco-marketing. (Jain, 2004). Increase in global sustainable awareness has made the concept eco-marketing to become prominent in the marketing plan of many organizations. Moreover, global rise against environmental destruction, which has led to carbon emission and climate change has made many businesses to design their marketing plan towards sustainability advantages. Additionally, health consequences that have arisen from environmental degradations have made increasing number of consumers to design eco-products to achieve competitive market advantages.

Cherian, and Jacob, 2012) define eco-marketing as a strategy that business organizations employ to design, promote and distribute product in a way to promote environmental sustainability. In other words, eco-marketing is the strategy employed by businesses to facilitate human needs and minimize environmental degradations. Typically, eco-marketing covers overall marketing techniques to promote green product manufacturing in order to reduce negative impact of environment degradations. In the present marketing environment, eco-marketing has become a vital component of marketing plan, which has been a genuine effort to promote environmental sustainability. Businesses globally have been forced to adopt eco-marketing because increasing number of consumers are moving towards green consumerism.

The green consumers are the categories of consumers who purchase products that are compatible to environmental sustainability. Despite importance of eco-marketing in enhancing environmental sustainability, large number of literatures focus on the impact of eco-marketing on hospitality industry in advanced countries such as the United States, United Kingdom, Canada, and other western countries. (Kumar, Rahman, and Kazmi,2013). By consequence, few literatures focus on the eco-marketing in Thailand, the paper attempts to fill the gap by reviewing the literatures focusing on the impact of eco-marketing on the Thailand hospitality industry.

Impact of Eco-marketing on Thailand Hospitality Industry

Since 1980, Thailand hospitality industry has played a critical role in the Thailand economy. Thailand composes of more than 55 million people and is one of the developing countries with the most dynamic economy. In the last 10 years, Thailand has recorded one of the highest growth rate with average annual GDP (gross domestic product) reaching 10% per annual. However, hospitality industry plays a crucial role in the Thai economy. Typically, hospitality industry provides one of the large source of foreign exchange in the country contributing to more than 5% in the Thai GDP. Moreover, hospitability industry has yielded economic returns in the economy, stimulates Thai economic growth, raises the country standard of living and encourage investments. However, in the last few years, Thai hospitality industry has faced new challenges with global demand for eco product and services. (Chon, Harrah, and Mikula, 1993).

Global commitment for eco product and services has made the Thai hospitality industry to embrace sustainability marketing agenda, and many hospitality firms have been committed in enhancing eco marketing to attract more clients in order to achieve competitive market advantages. Jain and Kaur (2004) argue that environmentalism has become an important global phenomenon based on the increasing occurrence of green house effect, acid rain, ozone layer depletion and land degradation. Similar to developed countries where increasing number of NGO (non-governmental organizations), government agencies and environmentalists are demanding firms to implement eco-marketing in their marketing plan, increasing number of developing countries are also concerned about the environmental sustainability . Although, consumers are reacting positively about the eco-marketing in Thailand, however, lack of effective enforcement laws in Thailand still contribute to environmental problems in Thailand. (Amorntatkul, and Pahome 2011).

A report by the Thailand Tourism (2011) reveals that Thailand hospitality industry is going green. Typically, global warming is becoming an issue affecting all people. Similar to Hospitality industry in advanced countries, the hospitality industry in Thailand has joined hand with other international organizations to enhance environmental sustainability. With increase in climate change and global warming, many Thai business are looking for the strategy to reduce the carbon footprint. Going green has become a long-term strategy that hospitality industry use to enhance competitive advantages, and the energy saving measures assist in reducing in carbon footprint, and operating costs.

Dusit Thani Bangkok is one of the hotels in Thailand that has adopted the environmental sustainability. Typically, the hotel has contributed to a reduction of carbon footprint. The hotel uses the energy saving menus, and lunch containers made with recycled materials. Many hotels and tourist firms in Thailand have also integrated the eco-marketing model in the marketing plan. For example, "Sai Kaew Beach Resort," Indra Regent Hotel, Paradee, Aiyapura Resort, Samed Club, Aiyapura Resort, Aonang Villa Resort and other many firms in the Thai hospitality industry have adoped the eco-marketing in their marketing plan to attract customers. (Thailand Tourism, 2011 p 33).

Svetasreni (2013) contributes to the argument by pointing out that eco-marketing has led to a tourist attractions in the Thai hospitality industry, and eco-marketing strategy has made Thailand hospitality industry to achieve a record breaking in market performances. For example, increase in number of visitors from Japan, South Korea, Russia, and India have led to an increase in number of consumers' visiting Thailand hospitality industry. In 2012, Thailand receives more than one million visitors from each of these countries.

In 2013, the eco-marketing strategy that Thailand hospitability industry has adopted makes the industry to receive more than 10.6 million tourists, which is more than 19.09% increase between 2012 and 2013. Based on the figure presented by the Ministry of Tourism & Sport, the Thailand hospitality industry received the total of 3.1 Million visitors in 2013 from East Asia, 2.9 Million from Europe, 503,000 consumer from Americas and 538,000 from Asia. Moreover, the Thai hospitality industry also recorded 329,000 visitors from Oceania, and 62,000 from Africa. In the same year, the industry received more than 1.9 million Chinese tourists.

Svetasreni (2013) points out that eco-marketing is one of the marketing strategies that Thai hospitality industry employs to achieve competitive market advantages. Typically, sustainable marketing has been the backbone of the industry. Many hospitality companies use marketing agency to design eco-marketing At present, Thailand has more than 100 Green hotels, which use the sustainable marketing strategy to attract customers. Karryon (2015) contributes to the argument by pointing out that Thai hospitality industry has used the eco-marketing to enhance sustainable market advantages in the tourism industry.

For example, Thailand Travel Mart focuses on marine tourism, culinary tourism, wedding and honeymoons and weddings, as well as health and wellness. Moreover, the UNESCO World Heritage in Thailand has also focused on domestic tourism. More importantly, the Thailand parks has 148 parks, and the parks have developed website to provide accommodation and reservation for visitors, and the Parks have used the eco-marketing to enhance sustainable practice, which assist in enhancing competitive market advantages. Moreover, the Green Leaf Foundation has assisted the Thai hospitality industry to operate sustainable practice and promote good practice. Jointly with Green Leaf Foundation, the Thai government has implemented programs to educate farmers to adopt sustainable practice and encourage hotel management to source for food from farmers to indulge in sustainable farming practice.

Muqbil.(2013) support this argument by pointing out that the TAT (Tourism Authority of Thailand) employed sustainable marketing practice in attracting more customer to the Thai Hospitality industry. The impact of climate changes, and global warming has made increasingly numbers hospitality companies to pursue both economic gain and sustainable benefits from tourism. Muqbil (2013) further points out that sustainable marketing effort that hospitality industry has adopted has enhanced the market advantages of the hospitability industry making the Thailand Tourism industry to receive more than 30% value for money. In 2011, the Thailand Tourism recorded more than 31% increase between 2010 and 2011. In 2011, the Ministry of Tourism recorded U.S.$25.45 billion earning, which was more than U.S.$23 billion of the original target. The figure reveals that Thailand hospitality industry has recorded both an increase in quantity and quality arrivals.

"According to the Ministry, Thailand recorded 19.23 million international visitors in 2011, up by 20.67% over 2010. With an average length of stay of 9.64 days, and an average daily spend of 4,187.12 baht (U.S.$137) per person, the Thai tourism industry generated 776 billion baht in earnings." (Muqbil, 2013 p 3).

A report by the Tourism Authority of Thailand (2015) reveals that Thailand receives total of 24.4 million visitors between January and May in 2015, which is 25% more than the visitors received in the same period in 2014. Before the end of 2015 fiscal year, the Ministry of Tourism estimates that the Thailand will receive more than 28 million visitors. Typically,… [END OF PREVIEW]

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