Presentation on theme: "Destination Marketing"— Presentation transcript:
1 Destination Marketing Marketing for Hospitality and TourismKotler, Bowen and MakensDestination MarketingChapter 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 ProfessionsMultiplier EffectState and Local Tax RevenuesTourists 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 boundariesBenefits of TourismTourism’s most visible benefit is direct employment in hotels, restaurants, retail establishments, and transportationA second but less visible benefit consists of support industries and professions, many of which pay considerably more than the visible employment opportunitiesThe third benefit of tourism is the multiplier effect as tourist expenditures are recycled through the local economyTourism’s fourth benefit is state and local revenues derived from taxes on tourismTourism helps shift the tax burden to nonresidentsTourism also yields a fifth benefit – it stimulates exports of locally made productsExports of Locally Made Products
4 Industry & Community Cooperation Carbon-Neutral Vacations Sustainable TourismSustainable Tourism(Ecotourism)Industry & Community CooperationCarbon-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 futureSustainable tourism is a concept of tourism management that anticipates and prevents problems that occur when carrying capacity is exceededEcotourism is one of the fastest growing niche markets in the travel industry and generally viewed as representing sustainable tourismModified Environments: Ecotourism SubsetsToday, members of the tourism industry such as resorts, ski lodges, golf courses, and city centers have developed habitats on their grounds that encourage wildlifeRather than provide neatly manicured lawns and plants that provide no food value to animals, some resorts are encouraging natural areas, nesting sites, and artificial reefsIndustry and Community CooperationSuccessful long-run tourism destinations require cooperation in planning among constituenciesCarbon-Neutral VacationsAs the number of concerns about global warming increase, the demand for carbon-neutral vacations will also increase
5 Events and Attractions Sports EventsEventsBiking & Marathon EventsWaterfront AttractionsAttractionsCasinos as AttractionsEvents and attractions are the two primary strategies used by tourist destinations to attract visitorsEvent MarketingEvents 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 yearsSports EventsMany communities view sports events as attractive ways to bring visitors to their destinations. These events are often enjoyed by both visitors and residentsBiking and Marathon EventsTwo very popular sports events are biking and marathonsAttractionsAttractions 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 VaticanWaterfront AttractionsThroughout much of the world, cities and towns have finally realized the tremendous value of their river, lake, and ocean waterfrontsThe development of areas of cities such as waterfronts for multipurpose living is an extension of the natural attraction that cities have always held for travelersCasinos as AttractionsResearch has shown that casinos do not take business away from local restaurants and they do create jobsTo maximize its benefits, gaming should be incorporated into a strategic plan for the areaFrom a tourism perspective gaming works best when it is part of several tourism attractions for the area, not the only tourism attraction for the areaStopover TourismMany visitor destinations are in fact only stopover destinations for travelers on their way elsewhereStopover Tourism
6 Psychological Determinants of Demand PrestigeEscapeSexualOpportunityEducationSocialInteractionFamilyBondingRelaxationSelf-DiscoveryThe decision to spend one’s disposable income on travel versus furniture, a boat, or other purchase alternatives involves important psychological determinants:PrestigeA level of prestige has always been attached to travelers, particularly long-distance travelersEscapeThe desire to escape momentarily from the day-to-day rhythm of one’s life is a basic human needSexual opportunityThis has both a positive and an ugly sideEducationTravel in and of itself has historically been viewed as broadeningSocial interactionThe opportunity to meet and interact with people previously unknown is a powerful motivatorFamily bondingFamily reunions have become an important market segment for many in the travel industryIn an era of intense pressure on the family, such as two careers, there is a strong need to refocus priorities and bond as a familyRelaxationObservers 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 adulthoodSelf-discoveryFor many, travel offers the opportunity to “find oneself.”
7 Other Types of Tourism Types of Tourism Agritourism Space Tourism Hiking & PilgrimagesVolunteer VacationingMedical TourismGenealogical TourismAgritourismIn an era in which most people in industrialized nations are urban or suburban dwellers, farm and ranch tourism has become increasingly importantSpace TourismA number of private companies have been formed to provide trips into space for touristsNASA 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 1972Under its guidelines people can only walk within 246 feet of the first site were Neil Armstrong first walked on the moonMulti-Day Hiking and Religious PilgrimagesA 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 sitesTrails are available for special-interest hikers with cultural, scientific, religious, or gastronomical interests such as wine toursVolunteer VacationingThis form of tourism is also called purpose-driven tourismThousands of individuals increasingly choose to spend their vacation period assisting others, particularly in underdeveloped nationsMedical TourismMedical tourism is one of the fastest growing and most lucrative segments of tourism, as people travel internationally to gain access to less expensive medical careThe growth in medical tourism is driven by four main factorsLow costLong waiting lines in national healthcare servicesAccessibility to procedures and treatmentsOpportunity for a vacation and privacyMedical tourism is being blended with the opportunity for a vacationSome insurance companies in North America are offering their customers, who qualify for healthcare, the option to have it done at an international locationAs an incentive, they will waive the deductable and co-pay, as well as provide airfare and lodging during and after treatmentGenealogical TourismThe interest in knowing more about one’s ancestors has grown substantially in recent yearsMany 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 segmentsThe most commonly used classifications are based on whether the tourist travels with a group or independentlyThe common terms are group-inclusive tour (GIT) and independent traveler (IT)Organized mass touristsThis corresponds to the GITThese people have little or no influence over their travel experience other than to purchase one package or anotherThey commonly travel in a group, view the destination through the windows of a tour bus, and remain in preselected hotelsIndividual mass touristsThis corresponds to the ITThese people are similar to the previous category but have somewhat more control over their itinerary (See Slide 9)
9 Individual Mass Tourists ExplorersDriftersVisiting Friends/RelativesBusiness TravelersPleasure TravelersBusiness & Pleasure TravelersTag-Along VisitorsExplorersThese people fall in the IT classificationThey plan their own itineraries and make their own reservationsDriftersThese people, the backpacker group, seldom, if ever, are found in a traditional hotelThey may stay at youth hostels with friends or camp outVisiting friends/relativesVFR, as the name suggests, are people that stay in the homes of friends or relativesFor this reason, they are often discounted as important touristsThey may not spend money on lodging, but they do spend on dining, attending attractions/events, and shoppingBusiness travelersThis often encompasses any form of business including conventions, trade shows, job seeking, and many other reasonsPleasure travelThis too is a very wide and all-encompassing classificationIt may be of limited use without further segmentationBusiness and pleasure travelersMany convention and business travelers plan to incorporate a period of relaxation prior to or after their businessTag-along visitorsMembers of the family are common “tag-along” visitorsThe presence of tag-along children has created a subindustry of child care and entertainmentGrief travelAirlines offer special fares for family and friends attending funeral servicesThis segment will increase in importance as society agesEducation and religious travelThis broad category includes students, those on a pilgrimage, missionaries, and a host of othersPass-through touristsThese are extremely important visitors to states such as Kansas and Nebraska and to cities in Texas that serve as convenient rest or overnight stopping areasGrief TravelersEducation and Religious TravelersPass-Through Tourists
10 Functions of National Tourism Organizations Flow of Research DataRepresentation in MarketsOrganization of Workshops & Trade ShowsFamiliarization TripsParticipation in Joint Marketing SchemesCountries 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 tasksThe NTO can formulate and develop the tourist product or products of the destinationIt can promote them in appropriate marketsThe NTO is responsible for the following functions:Flow of research dataThe NTO coordinates tourism research for the areaRepresentation in marketsThe NTO often has offices in major marketsThese promote the country within the marketOrganization of workshops and trade showsThe NTO facilitates the interaction of tourism with members of the distribution channels, such as travel agents and wholesalersFamiliarization tripsThe NTO develops familiarization trips for key members of the distribution channel and travel writersParticipation in joint marketing schemesSome NTOs provide cooperative advertising support to help members promote to selected marketsSupport for new or small businessesNTOs may provide support for new products and small businesses that are important to the overall tourism of the areaConsumer assistance and protectionNTOs assist the consumer by providing product informationGeneral educationNTOs conduct conferences and courses to educate travel industry providers from their nation to understand the needs of foreign marketsSupport for New or Small BusinessesCustomer Assistance & ProtectionGeneral Education
11 Environmental & Natural Resources Government Operations Typical Tourism GoalsEconomicConsumerEnvironmental & Natural ResourcesGovernment OperationsGoals provide direction to the organization. The following are typical tourism goals:EconomicTo optimize the contribution of tourism and recreation to economic prosperity, full employment, and regional economic developmentConsumerTo 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 regionEnvironmental and natural resourcesTo 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 resourcesGovernment operationsTo 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 TermsAgritourism 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.