Chapter 14 Purposes of Travel

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Chapter 14 Purposes of Travel

  1. 1. The Tourism System 6th edition Chapter 14Kendall Hunt Publishing Company Purposes of Travel PART 4 TRAVEL Part 1. Destination: Planning, Developing, and Controlling Tourism An identification of the procedures that destination areas follow to set policies, plan, control, develop, and cater to tourism, with an emphasis on sustainable tourism development. Part 2. Marketing: Part 4. Travel: Strategy, Planning, Promotion, and The Characteristics of Travel Distribution An examination of the process by which A description of major travel segments, destination areas and tourism businesses travel flows, and modes of market services and facilities to potential transportation used. customers with an emphasis on the effective use of promotion and distribution channels. Part 3. Demand: The Factors Influencing the Market A consumer behavior approach to market demand emphasizing the internal and external influences on travelers including needs, motivation, and perception, the alternatives to travel, the marketing by tourism organizations, and the process by which travelers make buying decisions. © 2013 1 Photo by Jose Manuel Chapter 14 Purposes of Travel Castle of Almourol, Portugal, Photo by Jose Manuel © 2013Robert C Mill and Alastair M Morrison © 2013 1
  2. 2. The Tourism System 6th edition Chapter 14Kendall Hunt Publishing Company Purposes of Travel Contents  Explores the many segments of the travel market.  Divides the market into two main parts: leisure/pleasure and business. Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao Barbosa Purpose Readers will be able to demonstrate their knowledge of tourists by suggesting appropriate vacations, packages, services, and messages to the major segments of the market. Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao BarbosaRobert C Mill and Alastair M Morrison © 2013 2
  3. 3. The Tourism System 6th edition Chapter 14Kendall Hunt Publishing Company Purposes of Travel Learning Objectives: Leisure Markets  Describe the characteristics of the major segments of the travel market.  Suggest appropriate vacations, packages, and services to individual segments of the travel market.  Suggest appropriate messages to engage individual segments of the travel market. Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao Barbosa Traditional Segments of The Travel Market Note: Pleasure/personal = leisure travel Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao BarbosaRobert C Mill and Alastair M Morrison © 2013 3
  4. 4. The Tourism System 6th edition Chapter 14Kendall Hunt Publishing Company Purposes of Travel Leisure Travel Market Segments  Friends and Relatives: Non-active visitor:  Look for familiar surroundings  Do not participate in any activity  Friends and Relatives: Active city visitor:  Also look for familiar surroundings  More inclined to shop, sightsee, etc.  Family Sightseers:  Look for new vacations places to enrich and entertain their children Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao Barbosa Leisure Travel Market Segments  Outdoor Vacationers: Want clean air, rest and quiet, beautiful scenery, recreation facilities, facilities for children.  Resort Vacationers: Want outdoor sports, good weather, and a big city atmosphere.  Foreign Vacationers: Seek new destinations; want an exciting and enriching atmosphere with beautiful scenery; good accommodations and service more important than cost. Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao BarbosaRobert C Mill and Alastair M Morrison © 2013 4
  5. 5. The Tourism System 6th edition Chapter 14Kendall Hunt Publishing Company Purposes of Travel Leisure Travel Activities: U.S. Domestic Travel  Visiting relatives  Shopping Leisure Travel Types:  Visiting friends U.S. Domestic Travel  Rural sightseeing  VFR  Beaches  Weekend getaway  General vacation  Niche markets  Ideal American vacation trip Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao Barbosa Niche Leisure Markets  Gen Xers and Millennials  Travelers with disabilities  Girlfriend getaways  Mancations  Destination weddings  Procreation vacations  Babymoons  Medical/life enhancement travel  Voluntourism  Pet travel  Space travel  Culinary travel  Gay/lesbian market  Adventure travelers Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao BarbosaRobert C Mill and Alastair M Morrison © 2013 5
  6. 6. The Tourism System 6th edition Chapter 14Kendall Hunt Publishing Company Purposes of Travel Ideal American Vacation Trip (Cook, Burnett, Hopkins, and Loeb, 2007)  Rest and relaxation  Spending time with one’s spouse, partner, or family  Exploration and discovery  Luxury  Adventure  Socialization Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao Barbosa The Family Market  The interests of children are important when planning a vacation.  Freedom and flexibility is reduced when traveling with children.  Why vacation with the family?  Spend time as a family  Get away from the stress of home and work  Find rest and relaxation Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao BarbosaRobert C Mill and Alastair M Morrison © 2013 6
  7. 7. The Tourism System 6th edition Chapter 14Kendall Hunt Publishing Company Purposes of Travel The Family Market  Husbands/wives without children  Husbands /wives with children  Grandparents with grandchildren  Single parents with children  Now also “multigenerational” travel; grandparents, mothers/fathers, and children Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao Barbosa Group Tours  Package tours were a major force in the expansion of mass tourism in the past 60 years.  However, some argue that package travel has been declining due to greater preference for individualized and independent travel experiences, particularly in the U.S.  Group and package tours still remain of great importance in other countries. Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao BarbosaRobert C Mill and Alastair M Morrison © 2013 7
  8. 8. The Tourism System 6th edition Chapter 14Kendall Hunt Publishing Company Purposes of Travel The Gaming Market  In the U.S., the West is the biggest gambling destination (especially Nevada)  Gamblers are generally:  Older  Single with no children in the household  Less educated than non-gamblers  Types of casino locations:  Transient  Destination Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao Barbosa The U.S. Gaming Market (AGA, December 31, 2011) Type of Casino States Total # by with (#) type Land-based or riverboat 15 445 casinos Tribal casinos 29 459 Racetrack 13 47 casinos Card rooms 5 517 Electronic 6 11,091 gaming devices Note: There were 38 states with at least one of these types of casinos. Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao BarbosaRobert C Mill and Alastair M Morrison © 2013 8
  9. 9. The Tourism System 6th edition Chapter 14Kendall Hunt Publishing Company Purposes of Travel Gross Gaming Revenues in Macao (DSEC, January 2013) Year Gross Gaming Revenues (in MOP millions) 2002 23,496.0 2003 30,315.1 2004 43,510.9 2005 47,133.7 2006 57,521.3 2007 83,846.8 2008 109,826.3 2009 120,383.0 Macao’s gaming revenues are greater 2010 189,587.8 than those of Las Vegas 2011 269,058.3 2012 305,234.9 Note: 1 USD = 7.99 MOP, Jan. 22, 2013 Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao Barbosa The Senior Travel Market  As people age, they tend to attempt to maintain past behavior patterns  Sub-segments of the market:  The Escape and Learn Group  The Retirees  Active Storytellers  Seniors will become an increasingly important travel market Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao BarbosaRobert C Mill and Alastair M Morrison © 2013 9
  10. 10. The Tourism System 6th edition Chapter 14Kendall Hunt Publishing Company Purposes of Travel Senior Travel Motivators  Primary motivators for travel:  Needing to change routines  Seeing new things  Visiting friends and relatives  Meeting new people and experiencing new cultures  Expand knowledge  Creating memories Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao Barbosa Concerns of Senior Travel Market  Senior concerns:  Single supplement penalty  Health/mobility constraints  The fear of falling ill  Uncertainty about political conditions  Quality and quantity of information  The pace of itineraries  Language  Packing and unpacking  Meals  Concerns about transportation Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao BarbosaRobert C Mill and Alastair M Morrison © 2013 10
  11. 11. The Tourism System 6th edition Chapter 14Kendall Hunt Publishing Company Purposes of Travel Minority Travel Patterns Largest minority groups (U.S):  African-Americans:  Asian-Americans  More likely to travel for  More likely to travel by rental business car  Frequently visit southern  Frequently travel alone states and the Caribbean  Biggest spenders of the three  Hispanics groups  Travel with children  California, Nevada, Hawaii, and  More likely to take long trips Far East are the most popular and travel by plane  Tend to travel in the southwest of the U.S., and to Latin America Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao Barbosa The Cruise Market Segments (CLIA)  Market segments:  Enthusiastic Baby Boomers  Restless Baby Boomers  Luxury Seekers  Consummate Shoppers  Explorers  Ship Buffs Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao BarbosaRobert C Mill and Alastair M Morrison © 2013 11
  12. 12. The Tourism System 6th edition Chapter 14Kendall Hunt Publishing Company Purposes of Travel Trips by Canadians in Canada, by province and territory (Person-trips (destination)) 2006 2007 2008 2009 2010 Person-trips (destination) thousands Canada 207,470 214,559 214,498 227,121 229,158 Newfoundland and Labrador 3,068 2,939 3,006 3,256 3,500 Prince Edward Island 1,018 1,057 1,082 1,196 1,091 Nova Scotia 7,318 7,087 7,131 7,604 8,115 New Brunswick 5,254 5,349 4,937 5,358 5,458 Quebec 57,278 57,240 58,410 62,736 60,169 Ontario 83,036 86,903 84,995 88,412 90,174 Manitoba 7,275 7,294 7,109 7,935 7,984 Saskatchewan 7,874 8,164 8,028 8,464 8,624 Alberta 17,364 20,052 20,601 20,398 21,558 British Columbia 17,908 18,418 19,126 21,619 22,380 Yukon/Northwest Territories/Nunavut 77E 56E 74E 144E F E : use with caution. F : too unreliable to be published. Notes: Estimates are based on the 2001 Census population counts. Includes same day and overnight trips. Same day trip: distance 40 km or more one-way. Source: Statistics Canada, CANSIM, table 426-0013. Last modified: 2011-09-16. Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao Barbosa Learning Objectives: Business Markets  Describe the characteristics of the major segments of the travel market.  Suggest appropriate vacations, packages, and services to individual segments of the travel market.  Suggest appropriate messages to engage individual segments of the travel market. Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao BarbosaRobert C Mill and Alastair M Morrison © 2013 12
  13. 13. The Tourism System 6th edition Chapter 14Kendall Hunt Publishing Company Purposes of Travel The Business Travel Market  The “bread-and-butter” market for tourism. Can be categorized:  Regular business travel  Business travel related to meetings, conventions, and congresses  Incentive travel Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao Barbosa Regular Business Travel  Business travelers most likely to be male, Baby Boomers, and have high- speed Internet connections.  Recent trend: the pleasure-business trip  Business travelers bringing spouses, children, friends, etc.  Purchase more services destinations than leisure travelers. Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao BarbosaRobert C Mill and Alastair M Morrison © 2013 13
  14. 14. The Tourism System 6th edition Chapter 14Kendall Hunt Publishing Company Purposes of Travel The Frequent Flyer  Frequent flyer programs:  Recently have become less appealing, rewards fewer  Companies are seeking to have the reward given to them, not the traveler  Business flyers very constrained by time  They value leg room, schedules, and seat comfort  At the destination, they value comfortable bedding above all Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao Barbosa Technology and Business Travel  The majority of business travelers now use the Internet for flight information, though not for reservations.  Teleconferences, webcasting, videoconferencing reduce the need for travel.  Some companies have systems that allow employees to make travel plans with their own laptops, but within corporate policy. Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao BarbosaRobert C Mill and Alastair M Morrison © 2013 14
  15. 15. The Tourism System 6th edition Chapter 14Kendall Hunt Publishing Company Purposes of Travel Business Traveler on the Ground  Business travelers are easily segmentable.  Many hotels have taken to allocating whole floors or wings for business travelers who desire more luxury. Hotels add a surcharge, which has been quite successful.  Airlines have added executive luxury lounges in airports where business travelers can relax. Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao Barbosa Types of Business Travelers  Frequent business travelers  Women business travelers  Luxury business travelers  International business traveler  Typically a married male over 45 years old, in a director-level position at a small company  Occupational designations Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao BarbosaRobert C Mill and Alastair M Morrison © 2013 15
  16. 16. The Tourism System 6th edition Chapter 14Kendall Hunt Publishing Company Purposes of Travel Female Business Travelers  Are generally married, over 40, with no children  Not members of the hotel’s frequent guest program  Do not book online  Eat away from the hotel when with others and at the hotel when alone, though they prefer room service to eating alone in the hotel restaurant  Often incorporate leisure time into trip  Value good service, good hotel location, affordable rates, and convenience Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao Barbosa International Business Travelers  Techno-savvy, generally owns and brings a laptop computer  Values in-room high-speed internet access at the hotel  Prefers making calls and watching videos on the plane  Prefer to make travel arrangements through an agent, a printed flight guide, or through a secretary Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao BarbosaRobert C Mill and Alastair M Morrison © 2013 16
  17. 17. The Tourism System 6th edition Chapter 14Kendall Hunt Publishing Company Purposes of Travel The Future of the Business Market  Economic factors  Rate of the growth of the economy affects the level of business travel  Travel moves ahead of the rate of growth of the economy during times of economic stability  Exchange rates  Strong signs for business travel  Strong trade, investment, and output growth  Weak signs for business travel  High interest rates and unemployment levels Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao Barbosa The Future of the Business Market Regulation:  Deregulation of travel  Government policy regarding the treatment of business travel expenses for tax purposes  1978 – U.S. airline deregulation  Appearance (and disappearance) of many new airlines  Lower ticket prices  Business travel is a business expense  Tax deductibility of business meals has defined how clients entertained Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao BarbosaRobert C Mill and Alastair M Morrison © 2013 17
  18. 18. The Tourism System 6th edition Chapter 14Kendall Hunt Publishing Company Purposes of Travel The Future of the Business Market  Automation can increase or limit travel  Online information, booking, and purchasing encourage travel  Picture phones, videoconferencing take the place of travel  Many business travelers combine business with pleasure  They participate in tourist activities as well as business activities  After their business is concluded, they may return at a later time as a leisure traveler Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao Barbosa Learning Objectives: MICE Markets  Describe the characteristics of the major segments of the travel market.  Suggest appropriate vacations, packages, and services to individual segments of the travel market.  Suggest appropriate messages to engage individual segments of the travel market. Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao BarbosaRobert C Mill and Alastair M Morrison © 2013 18
  19. 19. The Tourism System 6th edition Chapter 14Kendall Hunt Publishing Company Purposes of Travel Conventions and Congresses  Services considered important to planners:  No-smoking rooms, concierge, 24- hour room service, gift shop  Adequate meeting facilities are a must  Predictions:  Second-tier cities will compete with first-tier cities for their business  Meeting planning cycles will continue to shorten  Planners will block fewer rooms Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao Barbosa Conventions and Congresses  The majority of all conventions are held in downtown hotels  Planners are looking to more sophisticated means of using technology  Baby Boomers want:  Fewer weekend meetings, the opportunity to include the family, and a greater emphasis on learning  Convention locations generally change from year to year  Corporate meetings need privacy more than recreational facilities and sightseeing opportunities Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao BarbosaRobert C Mill and Alastair M Morrison © 2013 19
  20. 20. The Tourism System 6th edition Chapter 14Kendall Hunt Publishing Company Purposes of Travel Incentive Travel  As standards of living have increased, incentives like cash and merchandise are no longer as appealing  For salespeople, travel is now the #1 incentive  Group travel is a very effective incentive Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao Barbosa Incentive Travel  People who “buy” incentive trip destinations look for:  Budget  Time of year  Participant background  Incentive history  Accessibility  Facilities  Activities Photo 1 by Jose Manuel; Photo 2 by Mauricio Abreu.; Photo 3 by Paulo © 2013 Magalhaes.; Photo 4 by Jose Manuel; Photo 5 by Joao BarbosaRobert C Mill and Alastair M Morrison © 2013 20
  21. 21. The Tourism System 6th edition Chapter 14Kendall Hunt Publishing Company Purposes of Travel THE TOURISM SYSTEM Chapter 14 Chapter Summary Highlights  Leisure travel and business travel are very different and each has several component segments.  A review of the major segments of tourism markets is key to getting the big picture of why people travel.  Understanding the profiles of these segments gives an indication of how to appeal to the various markets. Dolphins, Azores, Photo by Norberto Diver © 2013Robert C Mill and Alastair M Morrison © 2013 21

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