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May 16, 2008          DESTINATION MANAGEMENT 1.01



Index
Index ............................................................
May 16, 2008    DESTINATION MANAGEMENT 1.01



Introduction
A very important part of the tourism industry is Destination M...
May 16, 2008     DESTINATION MANAGEMENT 1.01

     The traveler is understood as someone who is seeking values such as lei...
May 16, 2008    DESTINATION MANAGEMENT 1.01

      interests and actions of all the concerned parties in the marketing of ...
May 16, 2008    DESTINATION MANAGEMENT 1.01

be fun in itself. Find things on the way that your guests may find interestin...
May 16, 2008     DESTINATION MANAGEMENT 1.01

story whether it is through the character of the streets, the foods, the mus...
May 16, 2008     DESTINATION MANAGEMENT 1.01

Example: If you own or manage a budget hotel with few amenities you cannot
c...
May 16, 2008    DESTINATION MANAGEMENT 1.01

Choose your target customer, which is the sort of client you see most of, and...
May 16, 2008    DESTINATION MANAGEMENT 1.01

competitor cannot claim. It is what makes the product competitively strong an...
May 16, 2008     DESTINATION MANAGEMENT 1.01



Why do we need a brand?
Marketing cities, regions, and nations has never b...
May 16, 2008    DESTINATION MANAGEMENT 1.01

A powerful brand is often accompanied by a catchy slogan.
You need to build b...
May 16, 2008    DESTINATION MANAGEMENT 1.01

Because punishment of consumers is harsh and unforgiving. Take the Coca Cola
...
May 16, 2008   DESTINATION MANAGEMENT 1.01

        The KTB boss, Dr Ong’ong’a Achieng, revealed that there would be a num...
May 16, 2008     DESTINATION MANAGEMENT 1.01

The analysis of your SWOTS will tell the strengths and weaknesses of your
de...
May 16, 2008     DESTINATION MANAGEMENT 1.01


Winning the “hearts and minds” requires an integrated approach over a long ...
May 16, 2008    DESTINATION MANAGEMENT 1.01

the new season starts. Travel brochures are printed and hit the shelves befor...
May 16, 2008    DESTINATION MANAGEMENT 1.01

Promote
Advertising
Advertising: The paid, public, non-personal announcement ...
May 16, 2008    DESTINATION MANAGEMENT 1.01

If your fam trips were a success and T.O.'s have added your destination to th...
May 16, 2008    DESTINATION MANAGEMENT 1.01

Don't:
Be afraid to be enthusiastic about your services. If you're genuinely ...
May 16, 2008    DESTINATION MANAGEMENT 1.01

Depend on your memory -- no matter how good you are, a few words scrawled on
...
May 16, 2008    DESTINATION MANAGEMENT 1.01

Give your tradeshow participation a fair chance to work. Results may not be
i...
May 16, 2008    DESTINATION MANAGEMENT 1.01

placements from past trips. Inviting a press person is an investment; if it d...
May 16, 2008     DESTINATION MANAGEMENT 1.01

Then came the golden age of Internet and everyone wanted to have a website.
...
May 16, 2008    DESTINATION MANAGEMENT 1.01




Management
Manage

When nobody is responsible for managing and protecting ...
May 16, 2008    DESTINATION MANAGEMENT 1.01

combined resources to achieve the best possible results.


Tourism Informatio...
May 16, 2008        DESTINATION MANAGEMENT 1.01

            Determine business priorities in terms of group or FIT busine...
May 16, 2008      DESTINATION MANAGEMENT 1.01

  Industry Analysis ................................... Error! Bookmark not...
May 16, 2008      DESTINATION MANAGEMENT 1.01

8. Investment Request .............................. Error! Bookmark not de...
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Destination Management 101

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Text of lecture given to students of tourism in developing nations. See also PPT Destination Management Course.

Published in: Business, Travel

Transcript of "Destination Management 101"

  1. 1. May 16, 2008 DESTINATION MANAGEMENT 1.01 Index Index .......................................................................................................... 1  Introduction .............................................................................................. 2  Definitions and terms............................................................................... 2  Define your destination. .............................................................................. 4  Location, location, location! ...................................................................... 4  What are you selling? .............................................................................. 5  How much? ............................................................................................ 6  To whom? .............................................................................................. 7  Set your boundaries ................................................................................ 8  Make your SWOT’s .................................................................................. 8  USP’s .................................................................................................... 8  Business plan ............................................................................................ 9  Branding................................................................................................... 9  What is a brand? ..................................................................................... 9  Why do we need a brand? ...................................................................... 10  How to manage a brand ......................................................................... 11  Market ................................................................................................... 13  Find your market .................................................................................. 13  SWOTS ................................................................................................ 13  Strategy .............................................................................................. 14  Continuation ......................................................................................... 14  Where to market ................................................................................... 15  Fam Trips............................................................................................. 15  Promote ................................................................................................. 17  Advertising ........................................................................................... 17  Free promotion ..................................................................................... 17  Trade shows ......................................................................................... 17  Tips on trade shows............................................................................... 18  Press Trips ........................................................................................... 21  Web 1.0, 2.0 and 3.0 ............................................................................. 22  Management .............................................................................................. 24  Manage .................................................................................................. 24  Consistent Funding ................................................................................ 24  Organize ................................................................................................. 24  National Tourism Organization ................................................................ 24  Tourism Information .............................................................................. 25  Addendum .............................................................................................. 25  Ready for the International Market? ......................................................... 25  Business plan index ............................................................................... 26  1 Copyright: Nelleke Pruijs - 2008
  2. 2. May 16, 2008 DESTINATION MANAGEMENT 1.01 Introduction A very important part of the tourism industry is Destination Management. Basically this means that you want to put your Destination, your country, city, village, region in the market for everyone to see. Think of it as an open air marketplace: you all know the market stall where people flock around, because the stall holder is entertaining, tells a good story or has a catching gimmick. People buy his product whether they need it or not. He tempts you with the price: ’ I give you not one, not two, but three bunches of bananas for the price of one!’ Do you pay less then elsewhere? No. But you think you do. ‘My bananas are directly imported from Guatemala, fresh from the tree, better tasting!’ True or false? Does it matter? What matters is, you bought his story! The same goes for your tourism product. And I will show you how it is done in this seminar. A destination cannot plan, cannot fully benefit from its potentials, or reliably avoid the inherent negative possibilities, without knowledge of the tourism market, visitors (demand side) and tourism industries (supply side). With increased market knowledge, the improvements in strategic marketing are powerful. The destination marketing organizations I researched invest a significant portion (2% to 10%) of their annual budget on research, and they are continually innovating ways to gather market information and apply it I divided Destination Management into 2 parts: Destination and Management. In the Destination part we will: Define: we will first define your product, what and where it is. Brand: we will give your product a name and make it stand out from the rest Market: Where are we selling it? Promote: once we have done the first three parts, we will start to tell people about it. In the Management part of the seminar we will discuss how to set up your local representation into a well oiled machine, with lots of interlocking wheels that start a momentum which will perpetuate the movement. You will see how tight organization and strict management will benefit you all, cost less, has more effect and is very successful. Working together is the motto you should never forget. Definitions and terms Before we go on I want to explain some terms to you that are essential in the tourism industry: 1. The Tourist: Defined by total needs and total experience desired by the visitor. 2 Copyright: Nelleke Pruijs - 2008
  3. 3. May 16, 2008 DESTINATION MANAGEMENT 1.01 The traveler is understood as someone who is seeking values such as leisure, relaxation, fun, personal enrichment. The tourist is most often traveling with a family or partners, which gives rise to additional needs and wants. Furthermore, the tourist will consume a broad range of products and services during the visit, all of which should offer an acceptable standard of quality. The tourist also wants choices, and sufficient information to make the best choices for him or herself. 2. The Destination: An interconnected and complimentary set of attractions, events, services and products which together create the total experience and value for the visitor. Within the picture of the total experience, there is usually a balance of the unique and the complementary - that is to say, interesting choices that together create a fun, convenient and personally valuable visit. Attractions in close proximity can be mutually supportive -- by offering nice choices for a vacationing family -- even though they differ thematically. In a successful destination, each attraction contributes something to the total. A coordinated and consistent offering is not realized by accident, but instead through careful management. 3. The Tourism Service Suppliers: Destination marketing is primarily accomplished by a large group of independent firms and agencies that work together to serve their independent interests. Suppliers include both private sector firms (e.g. a hotel), and public sector agencies (e.g. a public transportation department). Each private sector firm will behave in a way that maximizes its own return on investment, while public sector agencies will act to maximize the effectiveness of their resources and to accomplish their legislative mandate. But because of the essential interdependence of the players in the tourism market, destination tourism service suppliers should - and do - attempt to coordinate their marketing activities. Even so, private firms are constrained from taking a long-term view of destination marketing by short-term profit pressures and imperfect information. Coordination is difficult to sustain because of the inherent difficulty involved in perceiving the connection between individual contributions and individual returns. This inspires the need for a specialized public-private interest coordinator, who will not only coordinate strategy but also undertake the expense of demonstrating the benefits of coordination. It is this essential and necessary expense that is most often forgotten when it is assumed that private firms and agencies will coordinate tourist policies. 4. The Citizen: The ultimate authority and beneficiary with regards to his or her home city. The first mandate of destination marketing is to satisfy the long term needs and wants of its natural constituents: the people who sustain the city and give it life. Citizens are asked to host visitors and to harmonize their city's qualities with the needs and expectations of prospective visitors.7 What is tourism's reward to the citizens? Does it go beyond pure economics? These issues are vital to successful destination marketing, and the responsibility for handling these issues also falls to the public-private interest coordinator. 5. The Public-Private Interest Coordinator: An organization (like a National Tourist Board) that has the responsibility to coordinate and facilitate the 3 Copyright: Nelleke Pruijs - 2008
  4. 4. May 16, 2008 DESTINATION MANAGEMENT 1.01 interests and actions of all the concerned parties in the marketing of the destination. In other words, its job is to increase the potential benefits available to all the parties. Its duties are to: a. Recognize and respond to all concerned parties. b. Take a leading role in researching and analyzing the incoming-tourism market. c. Identify positive and negative influences in the market. d. Inform all concerned parties of these influences and facilitate the process of innovating or legislating solutions for them. e. Create positive influences by undertaking the marketing activities for which no other single party would have a sufficient return to provide on its own (e.g., consumer research, development of the destination brand image, communication, etc.). Fundamentally, the main roles of the public-private interest coordinator are continuous and rapid learning about the tourism demand-supply market and effective communication of the opportunities, threats and potential areas for coordination. This role cannot be fulfilled effectively either by the public sector or the private sector acting independently. Nonetheless, public and private sector interests are optimally served when a third-party coordinator provides these services; therefore, both the public and private sectors justifiably finance this service in conjunction with each other. Define your destination. Before you start doing anything you have to sit down and think about what you’ve got and what you want to sell. By defining your destination you can find out which sort of tourist might be interested in your product and which tourist you will attract. Location, location, location! Time is too short these days! And leisure time with family or friends, when it is available, is treated as more precious than ever. Whether it is the time needed to find information, to book a hotel, to reach the destination, or to access a specific place when you arrive, accessibility and ease of experiencing the destination are all critical considerations for visitors. The distance visitors have to travel can directly influence how long they may stay, or more importantly, whether they even want to make the effort to visit. How easy is it to get there? Is it accessible year round? How easy is it to get around once they are there? For any community serious about tourism, building greater visitor accessibility and convenience is critical. There is a vital link between the efficiency of transportation systems and tourism. Ensure that it is as easy as possible for visitors to visit and enjoy a stay with your community. On paper a distance may look close. But you know only too well that this is deceptive. Be realistic and measure in time not in distance. Is your destination reachable in one day or one hour? Not only that, traveling to your destination must 4 Copyright: Nelleke Pruijs - 2008
  5. 5. May 16, 2008 DESTINATION MANAGEMENT 1.01 be fun in itself. Find things on the way that your guests may find interesting enough to take a small break. Have some coffee or a snack. Visit a monumental church or vineyard. Prepare your itineraries in such a way that at least every 90 minutes there is the possibility to stop, relax or have a photo op. If travelling over the open road with normal traffic, take covering a distance of 50 km every hour as your measuring stick. Obviously travel over mountain- or unpaved roads take much longer. If organizing excursions in your area do a sample run yourself and pretend you are a visitor. What are you selling? Take a good hard look at your product with eyes as if you have never seen it before. Let us take some examples. You have a hotel with 20 double rooms. In a best case scenario you can offer hospitality to 40 guests. Are you going to sell to a coach operator? Why or why not? You have a vineyard and wine tasting room. Are you going to promote your product to families? Why or why not? You have a monument, church, monastery, or museum. What kind of visitors will you attract? Never sell what you cannot deliver. A bad experience takes years to recover from. But there is much more to consider. Can you combine your product with that of another supplier in your area? We call that ‘added value’. Is your product for the local market or the international market? Local market spends less but is consistent. Is your product seasonal; are there ways to extend the season? Offering off-season packages is a way to extend your season. Make your product irresistible to the client. What makes your destination unique and different from the others? The Disney company bought masses of land in Florida for next to nothing when it was just a swamp and practically useless. It was hot, wet and millions of mosquitoes. Today it is the number one tourist destination in the world: an endless bonanza of delights for the family, with parks, rides, museums, concerts, sporting, cuisine, and the growing list continues on, to include almost all imaginable leisure activities. Las Vegas used to be a place in the desert with no natural water supply. Today over 30 million people visit Las Vegas. Both places looked like they had nothing to attract visitors at the time, but imagination and cooperation made it what it is now. Every place has its own stories, character, style, history, people, and culture that reflect the essence of the place. When you are able to preserve this and interpret it in a manner that enhances the experience for visitors, you can have an edge over places that convey an all too familiar “sameness”. That “sameness” in destination is increasingly reflected in streets dotted with the architecture of “off the shelf” and uniform, national franchises that deny the distinctiveness provided by a local “sense of place” or character. Visitors want to understand and experience the local 5 Copyright: Nelleke Pruijs - 2008
  6. 6. May 16, 2008 DESTINATION MANAGEMENT 1.01 story whether it is through the character of the streets, the foods, the museums, the special events, or the lifestyle of the people. It makes for a fresh or different perspective and far richer and rewarding experience. A community’s appeal involves so much more than “what to see and do”. So many destinations try to sell themselves using a “laundry list” of attributes e.g. a beach, a casino, forests, or an historic museum. The reality is that most tourists travel to feel better in some way. This involves the visitor connecting with the place at a sensory or emotional level. Destinations that are able to deliver extraordinary, fulfilling or unforgettable experiences not only have a distinct competitive advantage, but are able to attract premium pricing and appeal to high value visitors. The destinations and tourism operators that focus on the customer experience and deliver it effectively are among the most profitable and attractive. All places have something that makes them different. When that “something” is attractive to visitors, then it is possibly something that can lead marketing efforts, and possibly even your branding. On the other hand, if your streets, attractions, and countryside are the same as everywhere else, why should people visit your community? Focus on features and experiences that make your destination a special place to visit. Does your destination have distinctive natural, cultural, or historic features? Does it have a different ambiance or character? Does it have a unique story to tell? These are the keys to successful tourism development. Successful destinations celebrate what makes them different. Shopping is an integral component of the tourism experience. For most urban destinations around the world (and for many non-urban ones too), shopping may not be the main reason visitors go there, but once there, shopping – as could be predicted - becomes the number one activity in terms of time and money spent. Shopping and browsing are the most popular tourist activity for most destinations. Having a variety of interesting retail stores in close proximity to each other can be a vital source of outside income for a destination. Celebrate shopping - it is the number 1 money spinner. How much? The crucial question every tourist asks first. Price is a question of comparison. Is it worth it? Can I afford it? In this chapter we will look at your price as compared to other places and an overall comparison of value for money. Does the price you need to charge for your product compare in a positive way to a similar product? Make sure you do not compare apples and pears. How much does a visitor have to spend to reach your destination? And when he gets there, how much does he need to spend to do what he wants to do? Rule of thumb: Selling price=your price + 20 to 30% (T.O.) The tour operator needs to pay the travel agent (10%) and promote the product. 6 Copyright: Nelleke Pruijs - 2008
  7. 7. May 16, 2008 DESTINATION MANAGEMENT 1.01 Example: If you own or manage a budget hotel with few amenities you cannot charge almost the same price as a hotel with new furniture, excellent beds and a swimming pool. If you need to charge the same price because of your overhead, you are doing something wrong. Clever managers make packages: remember the guy that was selling bananas. Add another product that is valuable to your client. Look and listen what your client wants. Example: If you organize excursions or guided tours, add value to your product by offering something for free. Or generate cost and time savings through visitor activity packages that include admission to several attractions over a period of several days. Example: Ski resorts offer packages including lift passes or discounts on equipment rentals. Example: Guided city tours give out coupons for restaurants offering a free aperitif or discounts on meals. To whom? Who is your client? These are questions you need to find an answer to. You cannot offer white water rafting trips to older people or young children. You cannot take non drinkers on a wine tour. These are simple examples. But the question is much more complex. It is nothing new to take tourists for granted, to assume they will respond to the opportunity to visit a nice or interesting destination. Operating in this way -- in the dark, so to speak – is not necessarily wrong (it is an essentially organic growth strategy), but it certainly can slow the ability to achieve important goals. You cannot plan, cannot fully benefit from your potentials, or reliably avoid negative possibilities, without knowledge of the tourism market, visitors (demand side) and tourism industries (supply side). Start at the beginning and do a small survey of the people that visit you. Make a questionnaire to try and find out without being obtrusive what category your clients fall into: How old is he/she – simple enough as you can see the client Where do they come from – ask What is their income – tricky, but you can usually put them into one of three income groups pretty easily: budget; middle income; affluent. What do they like – food, outdoor sports, peace & quiet, shopping, fashion, mountains, hiking, photography, bird watching, etc. How do they communicate – are they constantly on their cell phone or laptop or do they not even have an email address? What do they like to spend their money on – gadgets, foods, clothes, wine, home decorations, investing, family, children, electronics How do they travel – car, bicycle, train, plane, walking How long is he/she staying After one season you look at your statistics and draw a conclusion. Don’t try to be everything to everyone – you’ll end up in the poorhouse. 7 Copyright: Nelleke Pruijs - 2008
  8. 8. May 16, 2008 DESTINATION MANAGEMENT 1.01 Choose your target customer, which is the sort of client you see most of, and build your product around them. If your clients like to eat improve on your catering. If your clients like outdoor sports offer them a package including transfers. If your clients are budget conscious families with children find them self-catering apartments. If your clients are elderly make sure you offer them comfortable beds and furniture. If your clients have plenty of money, make sure you can offer them outings that they can spend it on. And again: coordinate and cooperate, find other suppliers you can work with to make a perfect package. Set your boundaries This is all about planning. Once you have decided what your target customer looks like you have to make a master plan, or 5 year plan if you want. Know your options – count your pennies and spend them wisely. Obviously you will not plan a camping if you are located on a steep hill, or plan to build a ski lift if you never get snow. If in 5 years you want to double the amount of guests, your target should be to add 15% more visitors each year. That doesn’t look so bad, does it? But, your capacity to serve double the amount of guests in five years means you have to start planning now. Take a coach company for example: if you have one coach and two drivers at the moment, you will need two coaches and four drivers and probably more staff in the office. That means heavy investments. If you have a hotel with twenty rooms and a restaurant with ten tables for four people at present, this means you will need to build another twenty rooms and extend your dining room, hire more staff, etc. Will you be able to do that? Your overhead will be much higher since you had to finance your extensions. Is the extra turnover worth it? Maybe you should not grow in height but rather in depth. You can class up your act in other words, go for the amount of clients that you may easily accommodate but offer them more (and more lucrative) choices. Make your SWOT’s What is a SWOT? SWOT (Strengths, Weaknesses, Opportunities and Threats) SWOT is a method of reviewing the current situation of your business or service. The idea is that you identify the strengths and weaknesses of your service, pinpoint opportunities and note threats. USP’s What is a USP? USP (Unique Selling Point) A unique selling point or proposition is a unique feature of a product that a 8 Copyright: Nelleke Pruijs - 2008
  9. 9. May 16, 2008 DESTINATION MANAGEMENT 1.01 competitor cannot claim. It is what makes the product competitively strong and without direct comparison; generally the most valuable unique advantage of a product or service, for the market or prospect in question; now superseded by UPB. To find the SWOT and USP of your product it is essential that you do the research as mentioned in the above paragraphs. Business plan The best way to achieve the above and the find financing for your projects is to use a standard business plan that will guide you through all the stages. If you want to have a template of a business plan for tourism, ask me afterwards, I can download a copy for you or send it to you by email. In the addendum of this paper I have added the index of a business plan for tourism. Branding What is a brand? We all recognize Starbucks or McDonald by its logo. Why is that? Because it is used all over the world in the same identical manner. We all recognize New York’s Apple, or Paris’ Eiffel tower, Pisa’s Leaning Tower or even China’s Olympic Games Logo. And take a look at these: UK: Visit Britain Singapore: Uniquely Singapore New York: Miffy/Nijntje Starting in the fall of 2003, NYC & Company, the official visitors & tourist organization for New York City, launched a marketing campaign to lure families to the city. Central to that effort was Miffy Loves New York City!, a picturebook-cum-guidebook where Dick Bruna's silent little Dutch rabbit visits quot;30 family-friendly New York City landmarks,quot; including Central Park, the Empire State Building, Ellis Island, The Plaza Condo’s Apartments. Brands and visual identity are fundamental parts of commercial activity, but does a destination need a brand and identity for tourism development? The answer is yes, because destinations, like companies, must communicate to a broad market of consumers what they are, why they offer what they do, and the consistency and quality of their offerings. This is accomplished through recognition of the brand and visual identity. Ultimately, a company's brand is the most visible part of that company's marketing strategy, and the same is true for tourism destinations. Without a strong identity, its marketing strength is severely undermined. Destination branding is a term used frequently in destination marketing to indicate the synergy of vision and branding in strategic marketing. 9 Copyright: Nelleke Pruijs - 2008
  10. 10. May 16, 2008 DESTINATION MANAGEMENT 1.01 Why do we need a brand? Marketing cities, regions, and nations has never been more dynamic, competitive and important than it is today. In this environment, market leaders have turned to branding themselves to stand out from competitors. These are some of the reasons why you need a brand: To amplify strengths with target markets to clearly stand apart from competitors. To create a unifying marketing umbrella and stimulating partnerships to project the destination as a place with attractive and desirable qualities, hence building a larger market share for the entire destination. To provide a focused decision-making framework to consistently shape a strong identity and avoid the “ad of the month” syndrome with frequently changing targets, designs, messages, images and themes. To improve and extend the results of your marketing efforts. Actually reducing marketing costs by generating a higher ROI for marketing investments. Creating greater synergy and harmony between all marketing messages. Clearer positioning and differentiation from competitors to project a winning edge in the mind of customers. Enables premium pricing rather than relying on discount pricing and incentives. Facilitates easier consumer recognition and simplify the purchase process. Contributes toward a faster recovery when they were affected by a crisis such as a natural disaster. Creates a barrier to new competitors wanting to introduce similar messages and product offers. Enhances the value of local businesses and provide the springboard and ‘celebrity’ for the launch and export of non-tourism products e.g. wine, crafts, art. Improved stakeholder profit margins, increased lodging tax revenues and enhanced appeal as a place to live and do business. Providing more repeat visitors and word-of-mouth referrals. Economic development objectives for investment, talent, and trade are more readily achievable. Overcome negative perceptions of the destination that had been out of date or inaccurate. Energizes stakeholders to more actively support the marketing of the destination. Greater unity and stronger partnerships and alliances between public and private sector organizations. My final suggestion to enable you to gain the greatest benefits from branding is to engage outside professional assistance to develop the brand strategy. You might find it too difficult without the objectivity, field experience, practical insights, and time savings that a professional can bring. 10 Copyright: Nelleke Pruijs - 2008
  11. 11. May 16, 2008 DESTINATION MANAGEMENT 1.01 A powerful brand is often accompanied by a catchy slogan. You need to build brand awareness in an over-communicated market to be noticed. All the more reason to not just create visual recognition but include a catchy tagline, we used to call it a slogan in the days before internet, which will add a great deal to brand recognition. Examples: Delta Airlines: You'll love the way we fly DHL: We keep your promises Esso: Put a Tiger in Your Tank Gillette: The best a man can get IBM: Solutions for a small planet New York: The Big Apple. I love New York! KLM: The reliable airline Marlboro Cigarettes: Come to Marlboro Country United Airlines: Fly the friendly skies of United Las Vegas: What Happens In Vegas Does Not Always Stay In Vegas Virginia: Virginia is for Lovers Australia: 'so where the bloody hell are you?' WOW Philippines: More than the usual American Express CC: Don't leave home without it India: Incredible India! Spain: Spain is different Georgia (US): Discover the Unexpected - Georgia on my mind How to manage a brand Everything you do to promote your brand needs design consistency. Continuous management of appearance is critical to creating brand equity and leverage. The biggest part of attraction that many people forget, is that people need to know you're there! Brand consistency must be seamless and transparent. Having an effective brand does not require, however, that the destination must be one-dimensional in its appeal. All destinations, beneath the brand umbrella are a family of diverse offerings, each of which has a brand of its own. This form of marketing -- multibranding -- is motivated by the findings of market research. The research will indicate that most visitors are seeking a varied experience that includes several distinctive attractions. In most cases, a premier attraction functions as a hook to bring in tourists, who will ultimately spend money on many other items. A visitor to any of these destinations will inevitably experience far more than the hook attraction. Multiple values are each branded and communicated to the potential consumer as a total, diverse experience. It is important to remember that once you have chosen your brand recognition values, taglines, visuals etc. you need to stay with that chosen image, maybe not forever, but a long time. Why does a famous brand never change its image? 11 Copyright: Nelleke Pruijs - 2008
  12. 12. May 16, 2008 DESTINATION MANAGEMENT 1.01 Because punishment of consumers is harsh and unforgiving. Take the Coca Cola brand. It has changed over the past century but only little bits at the time, so people wouldn’t notice. It is therefore of the ultimate importance that a destination brand image is carefully selected and developed over time and that once a choice has been made, this image functions as an umbrella to catch all promotional products for years to come. Sometimes rebranding is necessary, when the old image was damaged in some way or other. Example: May 18th 2008: Kenya steps up tourism marketing abroad The government has stepped up efforts to market Kenyan tourism abroad, Tourism minister Najib Balala has said after a 10-day tour of Europe where he visited among others the UK, Italy and Sweden. He met travel agents, tour operators, and government officials in those countries. Mr Balala said that the challenge lay in re-branding Kenya as a tourist destination following the post-poll violence that severely affected the industry. The marketing efforts begin on Saturday with a photo-shoot of ambassadors touring the Maasai Mara game reserve. The minister said the photo session will involve the British, American, Canadian and Australian envoys, and a delegation from the European Union. “The aim of the event is to reassure tourists in those countries, that Kenya is back to normal and safe for tourism,” he said. At the same time, he revealed that President Kibaki and Prime minister Raila Odinga had been invited to London by British Prime Minister Gordon Brown to discuss trade and tourism. He warned politicians “Politicians have to tone down, because a single statement can cause damage to the tourism that takes longer to correct,” he said. The minister said that more innovative ways of marketing tourism were needed. He said collaboration among ministries of Tourism, Culture, Finance, Sports, Transport, Immigration, and Trade was key if the revival efforts of the tourism industry were to succeed. The minister also disclosed that a television series to market Kenya in Italy was ready. He said the clip would be aired on May 18, five times a day on Italian channel, Rai TV. Also, he said, the ministry in collaboration with tour operators and the Kenya Tourism Board had sponsored a 36-page inserts in Italian newspapers to promote the Kenyan market. The tourism industry will use Euro 400 million to boost the marketing efforts. He also said that a fashion week would be organised in Mombasa early next year to market Kenya abroad. “The government realises that to milk a cow you have to feed it,” he said, alluding to the increased funding by the government to the KTB. The tourism board had a budget of Sh1.5 billion for marketing the tourism industry abroad. 12 Copyright: Nelleke Pruijs - 2008
  13. 13. May 16, 2008 DESTINATION MANAGEMENT 1.01 The KTB boss, Dr Ong’ong’a Achieng, revealed that there would be a number of celebrities visiting Kenya to endorse it as a tourism destination. Among those lined to visit the country are Prince William, the mayor of Milan Letizio Moratti, and president of Rome marathon Enrico Castrucci. Mr Balala flew in with a group of 30 tourists, among them travel writers, media personalities and tour operators. Virgin Atlantic chairman Sir Richard Branson will also be in Maasai Mara during the photo-shoot. Mr Balala would be visiting Japan and South Africa, and later Spain, America and France in the ongoing marketing efforts. Market Find your market Tourism is a relatively new field for marketing. As we have shown in the first part of this seminar creating a powerful brand is a first step. The second step is to find your market. This is primarily done through extensive surveys and research as shown before, of your visitors. Marketing is the science of creating added customer value, good marketing requires knowledge of what customer value is. The most basic marketing question is: quot;What do our customers, or potential customers, value?quot; The second key application of consumer knowledge should be segmentation and selection of target segments. The broad market of former, current and potential customers can be segmented along a number of dimensions. The most frequent being: geography, age, family status, household income, needs and wants, length of stay, trip budget. Another way to segmentyour visitors is by status such as: 1. Local residents 2. Motor Coach Tours/Retirees 3. FIT's (Frequent Independent Travelers) 4. Families with Children 5. Young Married Couples 6. Children or Students on School Tours 7. Convention Participants 8. International visitors In today's marketing environment, which is increasingly oriented to electronic communication media and information technology, targeting is especially useful, because only then can one utilize the new tools: email, Internet, ecommerce, database marketing. SWOTS 13 Copyright: Nelleke Pruijs - 2008
  14. 14. May 16, 2008 DESTINATION MANAGEMENT 1.01 The analysis of your SWOTS will tell the strengths and weaknesses of your destination. It is a very important exercise. It covers both internal and external factors. By using this tool, you’ll be able to see the pros and cons before even putting any money into a project. The Strengths and Weaknesses categories are both internal factors. These are pretty self-explanatory, but they are the aspects of your destination that you would be directly in control of. They could include the proper management of staff, financial situation, knowing the destinations capacity of supply and demand, and the overall efficiency of your operations. The Opportunities and Threats portion are external factors. These two are influences outside of your control and are external factors. By pointing out these aspects of the destination, you’ll be able to try and cradle the Opportunities to make the most of them and, hopefully, avoid the Threats before they occur. A few examples of these are changes in the economy, environmental issues, catastrophes, wars and weather. All in all, after using the SWOT analysis on your business plan, you’ll have a much better understanding before investing in your projects be it financial or in human resources. Strategy “Any road will take you there if you don’t know where you’re going”, said The Mad Hatter in “Alice in Wonderland”. The Mad Hatter’s approach to planning is certainly one to avoid when it comes to the tourism marketing for destination. In today’s competitive and over-crowded environment cities and regions cannot afford an ad hoc approach to marketing. Destinations have to plan to deliver outstanding experiences from the first moment that visitors click on a web site or look at a brochure, to when they see a “Thanks for Visiting Us” sign as they leave town. The first application of your destination marketing data is often setting the targets and planning the strategy for future years. In destination marketing, more so then in any other industry, there are many directly involved partners, even competitors that must work together to develop the destination: hotels, museums, monuments, event planners, theaters, restaurants, local government, transport providers, travel bureaus, tour operators, etc. It is difficult, if not impossible for destinations and tourism enterprises to survive if they do not actively participate in linkages, networks, partnerships and alliances. Tourism destinations, by their very nature are often a mix of places, visitor experiences, businesses, and organizations. At times these elements must come together to present a unified and cohesive product for prospective visitors. Continuation Success will require constant internal and external reminders and messages, and it is possible that only a small number of communications will be delivered through advertising. 14 Copyright: Nelleke Pruijs - 2008
  15. 15. May 16, 2008 DESTINATION MANAGEMENT 1.01 Winning the “hearts and minds” requires an integrated approach over a long period through a wide range of channels, methods, and experiences. One of the most important requirements for creating a meaningful brand is to maintain consistency in all applications and experiences. This consistency must be based on being true to the brand platform to connect with the hearts and minds of your best customers. It is an old marketing truism that we get tired of our advertising long before our customers do. A brand can unravel at any point of contact with customers. A slow-loading web page, poor phone service, inadequate signage, sloppy service, or poor interpretation will all impact a visitor’s perception and experience of the destination. Outstanding experiences are the hallmarks of a successful brand. What are the critical Promise Points? What is expected? Is it being delivered? Where to market There is a saying: ‘Don’t run, before you can walk’! To market your destination in places that you are not prepared for is a waste of money and effort. Take for example a show like ‘Vakantiebeurs’ in The Netherlands. Even though your destination was offered free space, you still had to invest in travel, staff, hotels, meals, advertising material, etc. All your research should have given you your answers already. If your research showed that 70% of your visitors are national in origin, then most of your marketing efforts should be directed towards your national market. While affluence grows, people will have more money to spend. If most of your international visitors come from one or two countries then develop strategies to market in those countries. If 50% of your visitors come from The Netherlands, and 5% from the USA, market in The Netherlands and leave the US for what it is. If your visitors come to ski, wine tasting or bicycling, divide your investment equally around those activities percentagewise. Don’t go into new territory until you have exhausted your present targets. And when going into new territory plan years in advance and start planning with a very small percentage of your budget. Spend a little more each year when you see that your efforts are successful. If not, stop immediately, you are wasting your time and money. Fam Trips Fam trips are familiarization trips for the travel industry. These are very important. The travel industry is your bread and butter, either national or international. Once your hotels are up to standards, you developed proper and interesting itineraries and you think you have a sellable product: you are ready to show the world your destination. Particularly the representatives of the travel industry. Fam trips are best organized by the umbrella organization for instance the National Tourist Bureau who can best coordinate and advise the suppliers. Set aside a few days in the season that the buyers in the travel industry our scouring the world for new and interesting products. Usually 6 to 8 months before 15 Copyright: Nelleke Pruijs - 2008
  16. 16. May 16, 2008 DESTINATION MANAGEMENT 1.01 the new season starts. Travel brochures are printed and hit the shelves before Christmas. To research, develop and price a new travel product takes up to one or two months. Organize your fam trips along these lines: No longer then 3 to 4 days (2 – 3 nights) Set up 2 or 3 different itineraries Send invitations to tour operators 2 months in advance Send out extensive information on the itineraries beforehand or make special pages on your websites accessible only with a password List all the reasons why you think T.O. should include your destination List accessibility by air, by road, by train Expect commitments to take part in the fam trip no earlier than one month in advance Divide participants into small groups, making sure that competing participants are put into different groups, no more than 3 T.O. each per group Include as many hotels and other accommodations as possible even if it means a detour Travel in minivans with a particularly good driver and each group accompanied by a knowledgeable and senior (English speaking) representative of the tourism industry (a supplier for example, who also recognizes that he has to sell the whole destination not just his own product) Try and organize the tours of each little group in opposite directions and with different destinations Start with a welcome dinner and a visual presentation of each itinerary On the last day organize a workshop where all buyers have a table and suppliers can offer their product by appointment of 10 minutes max. The afternoon can be used to meet up with individual suppliers or visits to suppliers product Use the best hotels to accommodate your guests, spare no expense BE FLEXIBLE! BE FLEXIBLE!! BE FLEXIBLE!!! Remember these people are doing a job, they are not on vacation, don’t make it a vacation. Don’t spend too long at anyone stop, be it a hotel or a monastery or a vineyard. Only if a participant asks, prolong your intended stay after you consult the other participants. The more you can fit into one day, the better it is. Do not spend time on meals. Try to limit lunch to ½ hour, and dinner to 1 hour. Make sure the meals are ordered in advance and ready on arrival including local specialties. Do not include alcohol, like beer or wine at lunch, unless specifically requested. Prepare your suppliers beforehand to make sure they offer a well coordinated and worthwhile product. (Check guidelines in the addendum). 16 Copyright: Nelleke Pruijs - 2008
  17. 17. May 16, 2008 DESTINATION MANAGEMENT 1.01 Promote Advertising Advertising: The paid, public, non-personal announcement of a persuasive message by an identified sponsor. Advertising is just a single component of the marketing process. It's the part that involves getting the word out concerning your business, product, or the services you are offering. It involves the process of developing strategies such as ad placement, frequency, etc. Advertising includes the placement of an ad in such mediums as newspapers, direct mail, billboards, television, radio, and of course the Internet. Advertising is the largest expense of most marketing plans, with public relations following in a close second and market research not falling far behind. And although advertising cannot be avoided in today’s marketing mix, there are many ways to avoid costly newspaper or magazine ads. Free promotion It is an art in itself to best make use of free promotion. I always advise to keep a large database of addresses of press agencies, travel writers, journalists, newspapers, magazines, television, radio, online magazines, P.R. and communication professionals, trade magazines etc. It should be the task of one dedicated person to keep this database up to date and to search constantly for new additions. Since the internet mailing does not cost very much. For instance you can send numerous mailing to up to 10.000 recipients for US$ 75 a month. Since you mail to commercial addresses this is not seen as spam, although you will have to give the recipient easy access to an unsubscribe button. Don’t worry about this, if they are professionals and the right recipient, they won’t unsubscribe. Mail if you have something new or exciting to communicate, make Press Releases regularly, make seasonal updates of your website and communicate this to your ‘subscribers’. If 4% of your recipients pay attention and write about your destination that is free advertising. All you want accomplish is that the public will start to recognize ever so slowly that your destination is a worthwhile place to go on holiday, to hold a conference or to have meetings. One 3 page article in a major magazine could have cost you over 100.000 Euro’s if you had to pay for it! Trade shows Trade and public shows, in the tourism industry these are often held in combination while there are one or two days especially for the tourism trade and the rest for the public, are a very good way to promote your destination. However, there are many snakes under the grass. A National Bureau of Tourism will usually be the driving force behind taking part in one or another trade show. Shows are very expensive, not only the space but the design of your booth, the staff, the preparation before, leaflets, brochures, travel and accommodation expenses, etc. Therefore it is of utmost importance that you choose carefully which trade show to partake in. Decisions should be made in context of target markets and expected visitors. 17 Copyright: Nelleke Pruijs - 2008
  18. 18. May 16, 2008 DESTINATION MANAGEMENT 1.01 If your fam trips were a success and T.O.'s have added your destination to their program, it is certainly worthwhile to sign up for a show in the area that this T.O. is located. In this case contact the T.O. and ask if you can piggy-back your destination in their booth. This is a great way of saving money and is usually beneficiary for both parties. If you have several T.O.’s in the area it will be sensible to have your own booth. Have a booth or displays designed especially incorporating your destination brand and taglines. You can use this display for several years. Tips on trade shows Do: Research a show carefully before you decide to exhibit. Does this show attract a large number of people from your target audience? Tradeshow participation takes a lot of time, energy and resources. You don't want to spend them on folks who are unlikely to visit your destination in the foreseeable future. Don't: Be afraid to ask questions. Show organizers have all kinds of information that new exhibitors would benefit from knowing. Ask about attendee demographics, exhibitor's requirements, and what assistance you can expect from the show's staff. Do: Start planning early. Regular tradeshow exhibitors routinely start planning their appearances twelve to eighteen months in advance. Don't: Pass up the chance to visit other tourism events before you exhibit for the first time. Make note of what exhibitors worked for you and what turned you off. What did you find to be effective? Can you incorporate those items into your own exhibit? Do: Make a list of goals and objectives for the show. This list should be very specific. Do you want to generate $X in new sales, start a certain number of new business relationships, or spread the word about introducing your destination to the market? Don't: Get sidetracked by what everyone else is doing - or by what people tell you you 'have' to do at a tradeshow. You're at the show to reinforce your expert identity and achieve your goals and objectives. Anything else is off-target. Do: Be open to creative and new ways of presenting your services. Tradeshow attendees see hundreds of exhibits in the course of one day. You need to be unique and engaging for your display to be memorable. 18 Copyright: Nelleke Pruijs - 2008
  19. 19. May 16, 2008 DESTINATION MANAGEMENT 1.01 Don't: Be afraid to be enthusiastic about your services. If you're genuinely jazzed up about what you represent, attendees will sense that. Enthusiasm is contagious -- and more importantly, it sells! Do: Learn the 80/20 rule and take it to heart. The best exhibitors are those who listen 80% of the time and talk 20%. Focusing on attendees' wants and needs is a surefire route to success. Don't: quot;Throw Upquot; on attendees. This very common practice occurs when nervous exhibitors can't stop talking, and keep up a constant barrage of facts, figures, and sales spiel. Attendees are quickly turned off by this. Do: Remember you're on display. What you're selling at a tradeshow is, primarily, first impressions. Be professional, well-dressed, and mannerly at all times. You never know who's watching. Don't: Eat, drink, or chat on your cell phone on the show floor. When you need refreshment or a break, leave your exhibit booth. Remember, the eyes of the public are on you at all times, so you'll want to conduct yourself well. Do: Be realistic. Tradeshows are long events. You're on the floor for anywhere from ten to twelve hours at a go, often several days in a row. This is a lot for any one person to do on their own. A booth should have at least two members of staff available at all times. Don't: Train the staff you take to a tradeshow. Make sure they understand what your marketing message is. Also, have a plan in place to cover what they should do when they run into a question they don't know the answer to. Don't: Be afraid to encourage people to move along if they're not interested in your destination. Some of the people who attend tradeshows are 'tire-kickers' -- they like to discuss everything, but buy nothing. You don't want to waste your time with them. Do: Take notes. Take time before the show to create a lead-card system, in which you'll record pertinent information to facilitate post-show follow-up. Don't: 19 Copyright: Nelleke Pruijs - 2008
  20. 20. May 16, 2008 DESTINATION MANAGEMENT 1.01 Depend on your memory -- no matter how good you are, a few words scrawled on the back of a business card won't be enough after the show is over and you've met with literally hundreds of people. Do: Be polite and nice to everyone. The junior executive today can be a senior executive tomorrow. Don't: Forget to read the Exhibitor's Service manual. This is the thick packet of materials you received when you registered for the show. Inside, you'll find everything you need to know about exhibiting at that particular show -- and discover important deadlines for ordering services. Don't miss those deadlines or you'll pay more for everything! Do: Reach out to the media. Have a press kit available in the media room. Be open to interviews -- reporters and freelancers often walk the floor looking for stories. If you have something truly newsworthy to announce, schedule a press conference at the show. Don't: Forget to advertise your tradeshow participation. Make sure your target audience knows they can see you at the show, where you'll be, and what they can expect when they visit you. Do: Follow Up! The most important part of any tradeshow takes place after you leave the building. You see that big pile of leads you've gathered? Send them all thank you notes for coming to see you -- and follow up with them the most promising prospects quickly. You'll be glad you did. Don't: Hesitate to include hands-on, interactive demonstrations into your exhibit whenever possible. People love to participate. They love to try new things. Most of all, they love to have fun. If you can integrate fun into your exhibit, you'll have more attendees than you know what to do with. Do: Use giveaway items that enhance the identity of your destination. You want items that your attendees will use regularly and reinforce their impression of your destination. Don't: Get caught up in trendy giveaway items pushed by promotional salespeople. You want to stand out from the crowd, not merge with it. Do: 20 Copyright: Nelleke Pruijs - 2008
  21. 21. May 16, 2008 DESTINATION MANAGEMENT 1.01 Give your tradeshow participation a fair chance to work. Results may not be immediate. Rome wasn't built in a day. But the business relationships you start at tradeshows today can steadily blossom into profitable partnerships tomorrow. Press Trips When you have your destination in order – you have branded it, researched it, marketed it, sold it to tour operators and are about to launch your advertising campaign. Is the time ready to organize a press trip? It probably is! The Press Trip is the last stage of your destination marketing efforts. Everything has got to be as perfect as it will ever be. Your destination is a show case. Think of it as selling your house. In order to get the best price, you made it look as good as you possibly can. And because you only get one chance: you painted it, cleaned up the garden, fixed the roof, priced it competitively and put up the For Sale sign. If your intended buyers (or journalists in this case) are disappointed, you blew it and have to start all over again. Waste of time and money. What is the purpose of a press trip? A press trip or media visit is a method for the destination to get positive publicity. This can be, if done right, very valuable as we saw before. It's entirely a business arrangement. The destination invests time and money to bring journalists, travel writers and/or photographers and filmers to visit. Once back home, the participants are expected to sell their stories and/or images about the destination. How are press trips organized? Press trips generally fall into two categories: 1) organized group trips and 2) individual trips. Organized trips are comprised of anywhere from 2 to 20 people. The itinerary, including meals, accommodations and schedules are arranged in advance by the organization sponsoring the trip. Writers and photographers are flown in, unless they live close enough to drive. Then the participants are escorted around to the attractions by van or bus. There is rarely any free time included in the itinerary. Flexibility is discouraged on group trips. For an individual press trip, the writer/photographer must contact the destination or its PR firm, to request quot;comps,quot; or complimentary arrangements. The rules for individual trips are wide open. For example, travel companions, may or may not be included. Getting airfare covered may be nearly impossible to most destinations. The press person make his own way to the destination, theTourist Board or its PR firm will assist him with media passes to attractions, maybe some meals, hotel accommodation and press kits, etc. An individual press person usually makes his/her own itinerary but the Tourist Board can assist and point him/her in the right derictin for new or interesting story lines. Who to invite on press trips? Press from places where your destination has targets. It is no use getting media from places where you have no representation. Press persons should preferably have firm assignment letters and/or those who have shown a good record of 21 Copyright: Nelleke Pruijs - 2008
  22. 22. May 16, 2008 DESTINATION MANAGEMENT 1.01 placements from past trips. Inviting a press person is an investment; if it doesn’t pay off in good publicity put him/her on your black list. Is a press trip like a vacation? Definitely not. A press group will be on the go from early morning until late in the evening, at least on organized group trips. Time spent at each tourist spot should be limited to a minimum or just enough in order to get a good impression, take photographs and then back on the road to the next one. Cram as much as you can in the available daylight hours. Travel writers will be taking notes and hitting the highlights only. They are at the destination to work, by that I mean to collect material, find article angles, or to interview local people. Be very strict on quot;press trip etiquettequot;. It refers to how press people are to conduct themselves while on a press trip. It is good to keep in mind that the media is on an expense account of your sponsors, be it the government or local businesses, it is important to make sure that yours sponsors are getting their money’s worth. Golden rules for press people to follow are: Never be late for meeting times or you'll make the other writers and escorts upset. Organized trips run on rigid time schedules, so don't be the one to foul it up. Always tip drivers, chambermaids, and others as appropriate. Don't complain about every little problem or hitch. Be friendly with your fellow writers. Once the trip is over, thank-you notes (via snail mail) should be sent to the sponsors. Once stories are printed, send copies to the sponsors immediately. Last but not least, when organizing the itineraries for press trips, make sure you try them out yourself before you offer the trip to the press. Drive it, map it, spend time on it, time it, photograph it, and make a proper expense budget of all details. If there is one thing you want to avoid it is surprises! Even if you drove it the year before, do it again. Something might have changed in the meantime. Better to be prepared than to be surprised! I find it very useful to dry-run an itinerary together with a professional photographer. Not only will he point you to places where you might want to stop for photo ops but he will provide you with nice stock photography to be available for your media tab on your website. Journalists that travel without a camera (or are just not very good photographers) love it when you have a large stock of photographs to choose from. Web 1.0, 2.0 and 3.0 Once there was the World Wide Web in the good old days of 15 years ago. We didn’t have cable or ADSL, everything was slow as a snail. You had to learn BASIC as a computer language and Microsoft had not launched Windows yet. Websites were not common goods yet. 22 Copyright: Nelleke Pruijs - 2008
  23. 23. May 16, 2008 DESTINATION MANAGEMENT 1.01 Then came the golden age of Internet and everyone wanted to have a website. There are billions of them on the net. And the website of your destination has to be able to compete in that overcrowded market. A website for a destination is one of the most important media and promotional tools. However, the making of a successful website is not easy. Research is, again, essential. I won’t say much about how to make websites and tourism portals because there are far more knowledgeable people then myself to tell you about that. Let it suffice that in this day and age expensive printing of brochures is a thing of the past and interactive websites are the thing of today. We all here a lot about Web 1.0, Web 2.0 and even Web 3.0 already. What is the difference and why is it important to go for a Web 2.0 website? Here are some points: Web 1.0 was about reading, Web 2.0 is about writing Web 1.0 was about companies, Web 2.0 is about communities Web 1.0 was about client-server, Web 2.0 is about peer to peer Web 1.0 was about HTML, Web 2.0 is about XML Web 1.0 was about home pages, Web 2.0 is about blogs Web 1.0 was about portals, Web 2.0 is about RSS Web 1.0 was about taxonomy, Web 2.0 is about tags Web 1.0 was about wires, Web 2.0 is about wireless Web 1.0 was about owning, Web 2.0 is about sharing Web 1.0 was about IPOs, Web 2.0 is about trade sales Web 1.0 was about Netscape, Web 2.0 is about Google Web 1.0 was about web forms, Web 2.0 is about web applications Web 1.0 was about screen scraping, Web 2.0 is about APIs Web 1.0 was about dialup, Web 2.0 is about broadband Web 1.0 was about hardware costs, Web 2.0 is about bandwidth costs Web 3.0 is a term used to describe the future of the World Wide Web. Following the introduction of the phrase quot;Web 2.0quot; as a description of the recent evolution of the Web, many technologists, journalists, and industry leaders have used the term quot;Web 3.0quot; to hypothesize about a future wave of Internet innovation. People want to communicate with other people, tell them about their experiences, show the photo’s and post video’s they made when on holiday. They want to be able to ask questions: How is the weather, where is good skiing, how is the food? Your website needs to do all that, and give loads and loads of information. You need at least one blog on your portal or website, several RSS feeds and interactivity. A Web 2.0 website gets lots more visitors, that is how you spread the news about your great destination. A good destination website should have a Media Tab where you post storylines and high res pictures for journalists and other media to download and use. 23 Copyright: Nelleke Pruijs - 2008
  24. 24. May 16, 2008 DESTINATION MANAGEMENT 1.01 Management Manage When nobody is responsible for managing and protecting the brand, the effort can be patchy and efforts usually stray from the prescribed guidelines. Successful brands, products or destinations are closely managed and protected. Responsibility for this is sometimes not well defined. If there aren’t clear guidelines throughout all management and operational areas, the brand will be presented in an ad hoc and inconsistent manner. One person should be responsible for the nurturing, promoting, managing and “policing” of the brand to direct it across all platforms. Consistent Funding Developing tourism requires that key organizations have sustainable funding bases for the long term development, management and promotion of the community as an attractive and viable destination. Consistent funding is required for not only the tourism marketing organization, but also to develop and sustain the public services, facilities, and attractions for visitors. The destination marketing organization responsible for the marketing of the community needs a consistent funding base to maintain its tourism programs. Developing a reliable funding base is one of the challenges for community tourism organizations. For many communities the introduction of a tax on overnight lodging, which is supplemented by grant funds and cooperative marketing programs, has proven to be the most effective model for them. In most cases, the lodging tax is also used to finance the improvements to services, events and local attractions necessary to sustain growth. To generate employment and income for the community, the commitment of local businesses, lenders, and investors is essential for the introduction and expansion of businesses. Planning for sustainable funding for tourism marketing and development is the central foundation for communities serious about tourism. With funds assured, the challenge is to use them in the most strategic and effective fashion possible. Organize National Tourism Organization A dedicated, consistent, systematic and organized approach to tourism is essential if a community is to be successful and happy with the types of tourism it develops. A healthy tourism industry requires cooperation, partnerships and collaboration between all sectors – public, commercial, and non profit. This can best be achieved by forming a tourism organization dedicated to coordinating the common interests of these public, private, and nonprofit players and focusing the application of their 24 Copyright: Nelleke Pruijs - 2008
  25. 25. May 16, 2008 DESTINATION MANAGEMENT 1.01 combined resources to achieve the best possible results. Tourism Information Timely and relevant information distribution is one of the most essential elements for destination success. Providing appropriate and stimulating information before and during a trip can be one of the most impactful and effective strategies for destinations to attract and extend the length of stay of visitors. This information can have a direct influence on the way that visitors spend their time, where they go, the services they use, and ultimately the amount of cash they leave in the community. So many places fail to provide web site, brochures, maps, and information outlets that can positively influence visitor decisions and behavior. Addendum Ready for the International Market? The following criteria are used to determine if a supplier is ready to work in offering “export ready” products to international markets: Suppliers Must: Be in business at least one year, with a proven track record for safe and professional operation. Demonstrate an adequate budget and marketing plan that includes international tour operators. Understand the roles played by receptive tour operators (RTO’s), tour operators/travel wholesalers, and retail travel agents. This includes an understanding of rack or retail pricing, agent commissions and wholesale net rates and client relationships at each level. Be willing to include receptive tour operators in your marketing and sales plan, and implement a regular sales call program directed toward these operators. Be willing to provide contracted wholesale net rates to receptive tour operators. As a general guideline, requirements are: 15% off the retail price for day activities and transportation and 20-30% off retail pricing for accommodations (higher discounts are common for volume production). Honor the contracted net rates, no price changes before the expiry of the contracted agreement. Provide detailed pricing and program information to tour operators and receptive operators at least one year in advance of selling season, i.e. May 1999 for the summer/fall 2000 season. Be prepared to communicate and accept reservations by telephone, fax and/or e-mail. Provide ‘same-day’ confirmation of booking arrangements. Set up billing arrangements with the operator, agency or receptive tour operator. Accept client vouchers as confirmation of payment for reservations. 25 Copyright: Nelleke Pruijs - 2008
  26. 26. May 16, 2008 DESTINATION MANAGEMENT 1.01 Determine business priorities in terms of group or FIT business. If you plan to pursue group business, consider access by tour buses, parking/turnaround areas, washroom facilities etc. Determine your maximum group size. Carry adequate insurance (minimum $3 million liability insurance for adventure product suppliers is recommended). Discuss this with your receptive operator (sometimes they can add suppliers to their existing policies at nominal cost). Provide support (free or reduced rates) for international media and travel trade familiarization tours. In addition to the above, the following should be considered “next steps” for consideration as business and market presence expands: Consider attending travel trade shows involving international buyers. Expand the sales call program to include international contacts as well as locally-based receptive operators. Be prepared to provide tour operators and media with 35mm slide, CD ROM or standard computer format images of the product or operation, for use in brochures, promotions and editorials. Consider producing video footage of product or operation for promotional and training purposes. Consider development of a website offering information on your product. Be prepared to adapt to uniqueness of certain foreign markets. Flexibility may be required with regard to last minute bookings and changes. Consider hiring frontline staff that speaks the language of the markets you are interested in pursuing. Business plan index Underneath is the index of a Business Plan for Tourism which I have prepared and can be used in multiple situations. To receive the complete business plan, please ask me or request by email at nelleke@twestc.com. Index ...................................................... Error! Bookmark not defined. 1. General ............................................... Error! Bookmark not defined. Short History ......................................... Error! Bookmark not defined. Company Info ....................................... Error! Bookmark not defined. 2. Business Description.............................. Error! Bookmark not defined. Industry Analysis ................................... Error! Bookmark not defined. Mission ................................................. Error! Bookmark not defined. Business Goals ...................................... Error! Bookmark not defined. Project Objectives .................................. Error! Bookmark not defined. Future Developments ............................. Error! Bookmark not defined. Value Proposition ................................... Error! Bookmark not defined. The Brand Proposition............................. Error! Bookmark not defined. Business Model ...................................... Error! Bookmark not defined. 3. Market Analysis .................................... Error! Bookmark not defined. 26 Copyright: Nelleke Pruijs - 2008
  27. 27. May 16, 2008 DESTINATION MANAGEMENT 1.01 Industry Analysis ................................... Error! Bookmark not defined. Targets and Growth................................ Error! Bookmark not defined. 1. Local Market ................................... Error! Bookmark not defined. 2. Your market ................................... Error! Bookmark not defined. 3. Your Target Market .......................... Error! Bookmark not defined. 4. Target Market Research .................... Error! Bookmark not defined. 5. B2B Market – Selling your project through an Incoming Agent or a Wholesaler ......................................... Error! Bookmark not defined. Competitive Analysis .............................. Error! Bookmark not defined. Direct: ............................................... Error! Bookmark not defined. Indirect: ............................................ Error! Bookmark not defined. Competitive Positioning:....................... Error! Bookmark not defined. Barriers to enter the market: ................ Error! Bookmark not defined. Name the barriers which may make it difficult to enter your project or your product into the market. ...................... Error! Bookmark not defined. Competitive advantage: ....................... Error! Bookmark not defined. SWOT Analyses ..................................... Error! Bookmark not defined. McDonald’s Hamburgers (Example) ........ Error! Bookmark not defined. Pricing strategy ..................................... Error! Bookmark not defined. Demand Forecast and Evolution of Market . Error! Bookmark not defined. 4. Product ............................................... Error! Bookmark not defined. Product Outline ...................................... Error! Bookmark not defined. What kind of products are you selling? ...... Error! Bookmark not defined. 1. A ................................................ Error! Bookmark not defined. 2. B ................................................ Error! Bookmark not defined. 3. C ................................................ Error! Bookmark not defined. 4. D................................................ Error! Bookmark not defined. 5. E ................................................ Error! Bookmark not defined. 6. F ................................................ Error! Bookmark not defined. 5. Marketing ............................................ Error! Bookmark not defined. Affiliation Marketing ............................... Error! Bookmark not defined. E-Marketing .......................................... Error! Bookmark not defined. Direct marketing .................................... Error! Bookmark not defined. Sales.................................................... Error! Bookmark not defined. B2C Sales .......................................... Error! Bookmark not defined. Selling your project or product to consumersError! Bookmark not defined. B2B sales ........................................... Error! Bookmark not defined. 6. Planning & Implementation .................... Error! Bookmark not defined. 7. Financials ............................................ Error! Bookmark not defined. Assumptions & Limitations ...................... Error! Bookmark not defined. Projected P & L ...................................... Error! Bookmark not defined. PROJECTED P&L STARTUP .................... Error! Bookmark not defined. PROJECTED P&L FIRST YEAR OF OPERATIONError! Bookmark not defined. PROJECTED P&L FOR 5 YEAR PERIOD ..... Error! Bookmark not defined. Projected Cash flow ................................ Error! Bookmark not defined. PROJECTED CASHFLOW START-UP......... Error! Bookmark not defined. PROJECTED CASHFLOW FIRST YEAR OF OPERATIONError! Bookmark not defined. 27 Copyright: Nelleke Pruijs - 2008
  28. 28. May 16, 2008 DESTINATION MANAGEMENT 1.01 8. Investment Request .............................. Error! Bookmark not defined. Contact Information ............................... Error! Bookmark not defined. About Our Business ................................ Error! Bookmark not defined. What is your project/company's unique value proposition?Error! Bookmark not defined. Description of your product or service. ... Error! Bookmark not defined. USP’s ................................................ Error! Bookmark not defined. Who are your target customers?............ Error! Bookmark not defined. Describe your primary and secondary target marketError! Bookmark not defined. Business info ...................................... Error! Bookmark not defined. About your Finances ............................ Error! Bookmark not defined. 28 Copyright: Nelleke Pruijs - 2008
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