Presentation is loading. Please wait.

Presentation is loading. Please wait.

Destination Marketing

Similar presentations

Presentation on theme: "Destination Marketing"— Presentation transcript:

1 Destination Marketing
Marketing for Hospitality and Tourism Kotler, Bowen and Makens Destination Marketing Chapter 17

2 Learning Objectives Discuss the benefits of tourism.
Explain tourism strategies and different options for creating and investing in tourism attractions. Understand how to segment and identify visitor segments. Explain how central tourist agencies are organized.

3 Benefits of Tourism Direct Employment
Support Industries and Professions Multiplier Effect State and Local Tax Revenues Tourists travel to destinations, places with some form of actual or perceived boundary, such as the physical boundary of an island, political boundaries, or even market-created boundaries Benefits of Tourism Tourism’s most visible benefit is direct employment in hotels, restaurants, retail establishments, and transportation A second but less visible benefit consists of support industries and professions, many of which pay considerably more than the visible employment opportunities The third benefit of tourism is the multiplier effect as tourist expenditures are recycled through the local economy Tourism’s fourth benefit is state and local revenues derived from taxes on tourism Tourism helps shift the tax burden to nonresidents Tourism also yields a fifth benefit – it stimulates exports of locally made products Exports of Locally Made Products

4 Industry & Community Cooperation Carbon-Neutral Vacations
Sustainable Tourism Sustainable Tourism (Ecotourism) Industry & Community Cooperation Carbon-Neutral Vacations “Tourism planners need to take into account the capacity of a location’s environment to support all of the area’s residents, not just tourists. Without such planning, a destination can be damaged to the point that travelers will stay away.” From a marketing standpoint, sustainable tourism can mean giving up current revenues from tourism by limiting capacity to ensure there will be demand for tourism in the future Sustainable tourism is a concept of tourism management that anticipates and prevents problems that occur when carrying capacity is exceeded Ecotourism is one of the fastest growing niche markets in the travel industry and generally viewed as representing sustainable tourism Modified Environments: Ecotourism Subsets Today, members of the tourism industry such as resorts, ski lodges, golf courses, and city centers have developed habitats on their grounds that encourage wildlife Rather than provide neatly manicured lawns and plants that provide no food value to animals, some resorts are encouraging natural areas, nesting sites, and artificial reefs Industry and Community Cooperation Successful long-run tourism destinations require cooperation in planning among constituencies Carbon-Neutral Vacations As the number of concerns about global warming increase, the demand for carbon-neutral vacations will also increase

5 Events and Attractions
Sports Events Events Biking & Marathon Events Waterfront Attractions Attractions Casinos as Attractions Events and attractions are the two primary strategies used by tourist destinations to attract visitors Event Marketing Events that attract a desired market and harmoniously fit with a community’s culture can provide beneficial results, particularly if the event regularly reoccurs over a period of years Sports Events Many communities view sports events as attractive ways to bring visitors to their destinations. These events are often enjoyed by both visitors and residents Biking and Marathon Events Two very popular sports events are biking and marathons Attractions Attractions may be natural such as Niagara Falls or The Scottish Highlands or manufactured such as The Shopping Areas of Buckingham Palace, Hong Kong, or the Vatican Waterfront Attractions Throughout much of the world, cities and towns have finally realized the tremendous value of their river, lake, and ocean waterfronts The development of areas of cities such as waterfronts for multipurpose living is an extension of the natural attraction that cities have always held for travelers Casinos as Attractions Research has shown that casinos do not take business away from local restaurants and they do create jobs To maximize its benefits, gaming should be incorporated into a strategic plan for the area From a tourism perspective gaming works best when it is part of several tourism attractions for the area, not the only tourism attraction for the area Stopover Tourism Many visitor destinations are in fact only stopover destinations for travelers on their way elsewhere Stopover Tourism

6 Psychological Determinants of Demand
Prestige Escape Sexual Opportunity Education Social Interaction Family Bonding Relaxation Self- Discovery The decision to spend one’s disposable income on travel versus furniture, a boat, or other purchase alternatives involves important psychological determinants: Prestige A level of prestige has always been attached to travelers, particularly long-distance travelers Escape The desire to escape momentarily from the day-to-day rhythm of one’s life is a basic human need Sexual opportunity This has both a positive and an ugly side Education Travel in and of itself has historically been viewed as broadening Social interaction The opportunity to meet and interact with people previously unknown is a powerful motivator Family bonding Family reunions have become an important market segment for many in the travel industry In an era of intense pressure on the family, such as two careers, there is a strong need to refocus priorities and bond as a family Relaxation Observers of human and animal conduct sometimes state that the human being is either alone or among a limited number of species that continue to play into adulthood Self-discovery For many, travel offers the opportunity to “find oneself.”

7 Other Types of Tourism Types of Tourism Agritourism Space Tourism
Hiking & Pilgrimages Volunteer Vacationing Medical Tourism Genealogical Tourism Agritourism In an era in which most people in industrialized nations are urban or suburban dwellers, farm and ranch tourism has become increasingly important Space Tourism A number of private companies have been formed to provide trips into space for tourists NASA is preparing for moon tourism, including developing plans to prevent looting of the six areas were manned space missions landed on the moon between 1969 and 1972 Under its guidelines people can only walk within 246 feet of the first site were Neil Armstrong first walked on the moon Multi-Day Hiking and Religious Pilgrimages A huge and growing market exists for multi-day trekking (hiking) In some cases, hiking has a religious basis such as in pilgrimages to significant religious sites Trails are available for special-interest hikers with cultural, scientific, religious, or gastronomical interests such as wine tours Volunteer Vacationing This form of tourism is also called purpose-driven tourism Thousands of individuals increasingly choose to spend their vacation period assisting others, particularly in underdeveloped nations Medical Tourism Medical tourism is one of the fastest growing and most lucrative segments of tourism, as people travel internationally to gain access to less expensive medical care The growth in medical tourism is driven by four main factors Low cost Long waiting lines in national healthcare services Accessibility to procedures and treatments Opportunity for a vacation and privacy Medical tourism is being blended with the opportunity for a vacation Some insurance companies in North America are offering their customers, who qualify for healthcare, the option to have it done at an international location As an incentive, they will waive the deductable and co-pay, as well as provide airfare and lodging during and after treatment Genealogical Tourism The interest in knowing more about one’s ancestors has grown substantially in recent years Many people plan vacations to visit genealogical research sites

8 Classification of Visitor Segments
Group-Inclusive Tour (GIT) Independent Traveler (IT) Several classifications have been used to describe different visitor destination segments The most commonly used classifications are based on whether the tourist travels with a group or independently The common terms are group-inclusive tour (GIT) and independent traveler (IT) Organized mass tourists This corresponds to the GIT These people have little or no influence over their travel experience other than to purchase one package or another They commonly travel in a group, view the destination through the windows of a tour bus, and remain in preselected hotels Individual mass tourists This corresponds to the IT These people are similar to the previous category but have somewhat more control over their itinerary (See Slide 9)

9 Individual Mass Tourists
Explorers Drifters Visiting Friends/Relatives Business Travelers Pleasure Travelers Business & Pleasure Travelers Tag-Along Visitors Explorers These people fall in the IT classification They plan their own itineraries and make their own reservations Drifters These people, the backpacker group, seldom, if ever, are found in a traditional hotel They may stay at youth hostels with friends or camp out Visiting friends/relatives VFR, as the name suggests, are people that stay in the homes of friends or relatives For this reason, they are often discounted as important tourists They may not spend money on lodging, but they do spend on dining, attending attractions/events, and shopping Business travelers This often encompasses any form of business including conventions, trade shows, job seeking, and many other reasons Pleasure travel This too is a very wide and all-encompassing classification It may be of limited use without further segmentation Business and pleasure travelers Many convention and business travelers plan to incorporate a period of relaxation prior to or after their business Tag-along visitors Members of the family are common “tag-along” visitors The presence of tag-along children has created a subindustry of child care and entertainment Grief travel Airlines offer special fares for family and friends attending funeral services This segment will increase in importance as society ages Education and religious travel This broad category includes students, those on a pilgrimage, missionaries, and a host of others Pass-through tourists These are extremely important visitors to states such as Kansas and Nebraska and to cities in Texas that serve as convenient rest or overnight stopping areas Grief Travelers Education and Religious Travelers Pass-Through Tourists

10 Functions of National Tourism Organizations
Flow of Research Data Representation in Markets Organization of Workshops & Trade Shows Familiarization Trips Participation in Joint Marketing Schemes Countries and states usually have government or quasi-government agencies that market destination tourism. On the national level, these are referred to as national tourism organizations (NTOs) An NTO has two marketing tasks The NTO can formulate and develop the tourist product or products of the destination It can promote them in appropriate markets The NTO is responsible for the following functions: Flow of research data The NTO coordinates tourism research for the area Representation in markets The NTO often has offices in major markets These promote the country within the market Organization of workshops and trade shows The NTO facilitates the interaction of tourism with members of the distribution channels, such as travel agents and wholesalers Familiarization trips The NTO develops familiarization trips for key members of the distribution channel and travel writers Participation in joint marketing schemes Some NTOs provide cooperative advertising support to help members promote to selected markets Support for new or small businesses NTOs may provide support for new products and small businesses that are important to the overall tourism of the area Consumer assistance and protection NTOs assist the consumer by providing product information General education NTOs conduct conferences and courses to educate travel industry providers from their nation to understand the needs of foreign markets Support for New or Small Businesses Customer Assistance & Protection General Education

11 Environmental & Natural Resources Government Operations
Typical Tourism Goals Economic Consumer Environmental & Natural Resources Government Operations Goals provide direction to the organization. The following are typical tourism goals: Economic To optimize the contribution of tourism and recreation to economic prosperity, full employment, and regional economic development Consumer To make the opportunity for and the benefits of travel and recreation universally acceptable to residents and visitors and to contribute to the personal growth and education of the population and encourage their appreciation of the geography, history, and ethnic diversity of the region Environmental and natural resources To protect and preserve the historic and cultural foundations of the region as a living part of community life and development and to ensure future generations an opportunity to enjoy the rich heritage of the region, as well as to ensure the compatibility of tourism, recreational, and activity policies with other regional and national interests in energy development and conservation, environmental protection, and judicious use of natural resources Government operations To harmonize to the maximum extent possible all government-related activities supporting tourism and recreation; to support the needs of the general public and the public and private sectors of industries involved with tourism and recreation; and to take a leadership role with all those concerned with tourism, recreation, and cultural heritage conservation

12 Key Terms Agritourism Agriculture-based tourism that includes farms, ranches, and wineries. It provides rural areas with a means to attract tourists. Allocentrics Persons with a need for new experiences, such as backpackers and explorers. Destinations Places with some form of actual or perceived boundary, such as the physical boundary of an island, political boundaries, or even market- created boundaries. Destination marketing organization (DMO) A group that promotes a specific destination. Often a local convention and visitors bureau (CVB) serves as the DMO. Familiarization trip (Fam trip) A trip where travel agents or others who can send business to a tourist destination attraction, cruise, or hotel are invited to visit at a low cost or no cost. Infrastructure The system according to which a company, organization, or other body is organized at the most basic level. Macrodestinations Destinations such as the United States that contain thousands of microdestinations, including regions, states, cities, towns, and visitor destinations within a town.

13 Key Terms (cont.) Medical tourism One of the fastest growing and most lucrative tourism markets. The tourists spend a large amount on medical treatment, stay in top hotels, and often travel around the country after their surgery. Multiplier effect Tourist expenditures that are recycled through the local economy, being spent and spent again. National tourist organizations (NTOs) A national government or quasi-government agency that markets destination tourism. Psychocentrics Persons who do not desire change when they travel. They like to visit nonthreatening places and stay in familiar surroundings. Tourism A stay of one or more nights away from home for holidays, visits to friends or relatives, business conferences, or any other purpose, except such things as boarding, education, or semi-permanent employment.

Download ppt "Destination Marketing"

Similar presentations

Ads by Google