Introduction Tourism System


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An introduction to the Tourism System for tourism students of colleges and universities.

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Introduction Tourism System

  1. 1. An Introduction to the Tourism System Magiel Venema © 2011 Edutour BV
  2. 2. Table of Contents <ul><li>Introduction </li></ul><ul><li>The Tourism System </li></ul><ul><li>Tourism Demand </li></ul><ul><li>Tourism Supply </li></ul><ul><li>Intermediaries </li></ul><ul><li>Transit Regions and Tourism Flows </li></ul><ul><li>Supporting Institutions </li></ul><ul><li>External Environments </li></ul><ul><li>Acknowledgements </li></ul>
  3. 3. Chapter 1 Introduction
  4. 4. Aim of the Presentation <ul><li>To learn what Tourism Studies are about; </li></ul><ul><li>To learn what Tourism is about; </li></ul><ul><li>To get acquainted with the main players in Tourism; </li></ul><ul><li>To understand their relationships; </li></ul><ul><li>To experience the interdependence between Society and Tourism. </li></ul>
  5. 5. So let’s start: What is behind all this and is this all there is? Tourists Accommodations Attractions Ther is much, much more …………………
  6. 6. The answer…... <ul><li>Companies: Hotels, Transport, Travel Agencies, …. </li></ul><ul><li>Organizations: Information Services, …. </li></ul><ul><li>People: Management, Front Office, …. </li></ul><ul><li>Tourists: Needs, Wants, Behavior, …. </li></ul><ul><li>Governments: Laws, Subsidies, …. </li></ul><ul><li>Society: Norms, Values, …. </li></ul><ul><li>Politics: Terrorism, …. </li></ul><ul><li>Economy: Income, Employment, …. </li></ul><ul><li>Technology: Reservation Systems, Internet, .… </li></ul><ul><li>Together: THE TOURISM SYSTEM </li></ul>
  7. 7. Chapter 2 The Tourism System
  8. 8. What is a System? In a system, all separate parts perform together to make it function. Each separate part alone is of no use.
  9. 9. What is a System? <ul><li>Something that has parts: Components </li></ul><ul><li>Which are Interrelated </li></ul><ul><li>And which are changing in time: Dynamic </li></ul><ul><li>And what is part of Society: External Environment </li></ul><ul><li>Components of a System are Interrelated , so they influence each other. The System also receives and sends influences from and to the External Enviroment . </li></ul><ul><li>Because Components change, Interrelations change and Society changes, making a system Dynamic ! </li></ul>
  10. 10. A Car as an example of a System <ul><li>What makes a system? </li></ul><ul><li>Components </li></ul><ul><li>Interrelated </li></ul><ul><li>Dynamic (Changing) </li></ul><ul><li>External Environment </li></ul><ul><li>The System (Car) has many Components (like Wheels with Tires), which are Interrelated (Wheel and Car), so they Influence each other. They are Dynamic (Tear and wear), so there is Change . Also the System receives influences from External Environment (Nail on the Road), which causes a flat tire. Also it sends influences (Exhaust Fumes) to the External Environment . </li></ul>
  11. 11. Tourism as a System <ul><li>Components: Tourists, Companies, Destinations </li></ul><ul><li>Interrelated: Supply and Demand </li></ul><ul><li>Dynamics: Nature of Tourism changes over the years </li></ul><ul><li>External Environment: Political, Economical, Social and Technological Factors (PEST) influence and are influenced by Tourism </li></ul>
  12. 12. Dynamics of Tourism <ul><li>Tourism in the recent past: OLD TOURISM </li></ul><ul><ul><li>Travel industry was in charge </li></ul></ul><ul><ul><li>Attraction based </li></ul></ul><ul><li>Tourism in the near future: NEW TOURISM </li></ul><ul><ul><li>Consumer is in charge </li></ul></ul><ul><ul><li>Experience based </li></ul></ul>
  13. 13. Some Characteristics of ‘Old Tourism’ (from Fifties): <ul><li>Paid Holidays </li></ul><ul><li>Economic Growth </li></ul><ul><li>Jet Aircraft, Cheap Charter Flights </li></ul><ul><li>Sun-lust Tourists </li></ul><ul><li>Mass Tourism, Package Tours </li></ul><ul><li>Entrance of Multi National Companies (like TUI, Expedia) </li></ul>
  14. 14. Some Characteristics of ‘New Tourism’ (starting at the end of 20 th Century): <ul><li>Attention for Environment and Sustainability </li></ul><ul><li>Inmcreased Travel Experience </li></ul><ul><li>More Demanding & Experienced Customers </li></ul><ul><li>More Media exposure (TV, Internet, Twitter,..) </li></ul><ul><li>Experiences more important than Sun </li></ul><ul><li>New Production and Distribution Methods </li></ul><ul><li>Vertical and Horizontal Integration of Companies </li></ul><ul><li>New Technologies (Internet, Computer Reservation Systems, Database Marketing, Smart Phones, ….) </li></ul>
  15. 15. OK, let’s study the Tourism System! <ul><li>We will take a closer look at the Components, Interrelations, Dynamics and External Environment </li></ul>Tourists at a Destination Airport Dynamics: Old Tourism New Tourism Attitude of External Environment
  16. 16. The Tourism System : Components, Interrelations and Environment Demand Supply Intermediaries Influences from outside world Influences on outside world Transit Regions & Tourist Flows Supporting Institutions
  17. 17. Chapter 3 Tourism Demand
  18. 18. Tourism Demand Demand Supply Intermediaries Influences from outside Influences on outside Transit Regions & Tourist Flows S.I. S.I.
  19. 19. We will start with the Demand <ul><li>Demand = Tourists </li></ul><ul><ul><li>Effective Demand: Those who can and do </li></ul></ul><ul><ul><li>Potential Demand: Those who can, but don’t do it yet </li></ul></ul><ul><ul><li>Deferred Demand: Those who can and normally do, but not now for some reason </li></ul></ul><ul><ul><li>No Demand: Those who can’t do and won’t do it </li></ul></ul><ul><li>Why study Demand? </li></ul><ul><ul><li>Product Development </li></ul></ul><ul><ul><li>Marketing Purposes </li></ul></ul>
  20. 20. Definition of a Tourist <ul><li>Tourists are people who &quot;travel to and stay in places outside their usual environment for more than twenty-four (24) hours and not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited. </li></ul><ul><li>(UNWTO, 1995) </li></ul>
  21. 21. Definition Ottawa Conference (1991) <ul><li>International Tourism: </li></ul><ul><li>Travelers </li></ul><ul><ul><li>Visitors (included in statistics) </li></ul></ul><ul><ul><li>Other Travelers </li></ul></ul><ul><li>Two types of Visitors: </li></ul><ul><ul><li>Tourist (Overnight Visitor) </li></ul></ul><ul><ul><li>Same-day Visitor </li></ul></ul>
  22. 22. A more easy definition: <ul><li>A tourist is a temporary leisured person who voluntarily visits a place away from home for the purpose of experiencing a change </li></ul><ul><li>Time: Temporary </li></ul><ul><li>Choice: Voluntarily </li></ul><ul><li>Destination: Place away from Home </li></ul><ul><li>Motivation: Experience </li></ul>
  23. 23. Why do people travel at all? <ul><li>Push Factors: Why go? </li></ul><ul><ul><li>Needs and Wants </li></ul></ul><ul><ul><li>Self-fulfillment </li></ul></ul><ul><ul><li>To learn and to experience </li></ul></ul><ul><li>Pull Factors: Why there? </li></ul><ul><ul><li>Attractions in destination </li></ul></ul><ul><ul><li>Needs and wants fulfillment </li></ul></ul><ul><ul><li>Gains: real or perceived! </li></ul></ul>
  24. 24. Analyzing t he Demand <ul><li>Quantitative Aspects </li></ul><ul><ul><li>How many ? </li></ul></ul><ul><ul><li>When ? </li></ul></ul><ul><ul><li>How often ? </li></ul></ul><ul><ul><li>How do they travel and where do they stay? </li></ul></ul><ul><ul><li>How and where to? </li></ul></ul><ul><li>Qualitative Aspects </li></ul><ul><ul><li>Motivation </li></ul></ul><ul><ul><li>Composition </li></ul></ul><ul><ul><li>Typologies </li></ul></ul><ul><ul><li>Life styles </li></ul></ul>
  25. 25. The Demand <ul><li>Quantitative Aspects </li></ul><ul><ul><li>How many ? </li></ul></ul><ul><ul><li>Where to? </li></ul></ul><ul><ul><li>When ? </li></ul></ul><ul><ul><li>Ages? </li></ul></ul><ul><ul><li>How often ? </li></ul></ul><ul><ul><li>From where? </li></ul></ul><ul><ul><li>Type of Transportation? </li></ul></ul><ul><ul><li>Type of Accommodation? </li></ul></ul><ul><ul><li>Expenditures? </li></ul></ul><ul><ul><li>Etc. </li></ul></ul>
  26. 26. Statistics <ul><li>Quantitative Aspects are found in statistics </li></ul><ul><ul><li>International Statistics (UNWTO) </li></ul></ul><ul><ul><li>National Statistics </li></ul></ul><ul><li>Source for Planning and Marketing! </li></ul>
  27. 27. The Demand <ul><li>Qualitative Aspects </li></ul><ul><li>Composition Typologies </li></ul><ul><li>Norms and Values </li></ul><ul><li>Behavior Life styles </li></ul>
  28. 28. Maslow’s needs and motivations <ul><li>Maslow states that there is a hierarchy in human needs. When a lower need is fulfilled, than a person is motivated to pursue a higher need. </li></ul><ul><li>From low to high he distinguishes the following needs: </li></ul><ul><li>Physiological: Relaxation (Rest, Sunlust) </li></ul><ul><li>Safety: Security (Health) </li></ul><ul><li>Belonging: Love (Togetherness, Roots) </li></ul><ul><li>Esteem: Status (Recognition) </li></ul><ul><li>Self-Actualization: Be yourself (Self-discovery) </li></ul><ul><li>Enhancement 1: To Know and Understand: Knowledge (Culture) </li></ul><ul><li>Enhancement 2: Aesthetics: Beauty (Scenery) </li></ul>
  29. 29. Aesthetics To know and understand Self-Actualisation Esteem Belonging Safety Physiological Maslow’s Needs and Motivations Applied and Enhanced in Relation to Travel
  30. 30. Plog’s Typology of Tourists (Stanley Plog, 1974) <ul><li>Allocentrics : ‘other-centered’ tourists who enjoy exposing themselves to other cultures and new experiences, and are willing to take risks in this process </li></ul><ul><li>Psychocentrics : ‘self-centered’ tourists who prefer familiar and risk averse experiences </li></ul><ul><li>Midcentrics : ‘average’ tourists whose personality type is a compromise between allocentric and psychocentric traits </li></ul>
  31. 31. % of Population Psychocentric Near psychocentric Near allocentric Allocentric More familiar destinations Exotic destinations Midcentric Plogs Typology of Tourists
  32. 32. Plogs Typology of Tourists <ul><li>Psychocentrics </li></ul><ul><ul><li>Familiar Destinations </li></ul></ul><ul><ul><li>Traditional Activities </li></ul></ul><ul><ul><li>Tour Packages </li></ul></ul><ul><ul><li>Looking for Safety </li></ul></ul><ul><li>‘ OLD’ TOURISTS </li></ul><ul><li>Allocentrics </li></ul><ul><ul><li>Exotic Destinations </li></ul></ul><ul><ul><li>Discovery </li></ul></ul><ul><ul><li>Independent </li></ul></ul><ul><ul><li>More Adventurous </li></ul></ul><ul><li>‘ NEW’ TOURISTS </li></ul>Link between Type of Tourists and Type of Destination
  33. 33. % of Population Familiar destinations Exotic destinations Once Exotic Destinations become Mass Destinations! Plogs Typology of Tourists
  34. 34. Change of a destination: Acapulco (México) From a tiny fishing village into this…….. There are many Acapulco’s in the world!
  35. 35. Types of Tourists (After E. Cohen, 1972) <ul><li>Based upon both the interaction with local population and the use of travel industry </li></ul><ul><ul><li>Drifters </li></ul></ul><ul><ul><li>Explorers </li></ul></ul><ul><ul><li>Individual Mass Tourists </li></ul></ul><ul><ul><li>Organized Mass Tourists </li></ul></ul>
  36. 36. Typology of E. Cohen Drifter: Adventurous, avoids other tourists, makes no use of tourist services Long-term stay, immerses completely in the local society Explorer: Independent, immerse themselves locally, but rely also on modern amenities. Backpacker, guided by the ‘Lonely Planet’. Individual Mass-Tourist: Uses services of the tourism industry, limited contact with local population Traveling individually, but stays on the ‘beaten track’ Organized Mass-Tourist: Highly dependent on tourist industry, fully organized, no or limited contacts with local population, stays in own environmental bubble; Western-style accommodations, prefers cruise or ‘all-inclusive
  37. 37. Business & Leisure Travel <ul><li>No clear distinction between business and leisure in definitions: </li></ul><ul><li>Business Travel: Trips made by those who are required to travel in relation to their work. </li></ul>
  38. 38. Types of Business Travelers <ul><li>Individual Business Travelers: </li></ul><ul><ul><li>Sales, Service, Training,….. </li></ul></ul><ul><li>Corporate Hospitality (Grand Prix, Sky Box) </li></ul><ul><li>M eetings </li></ul><ul><li>I ncentives </li></ul><ul><li>C onferences </li></ul><ul><li>E xhibitions or E vents </li></ul><ul><li>Most of the time referred to as MICE </li></ul>
  39. 39. Chapter 4 Tourism Supply
  40. 40. Tourism Supply Demand Supply Intermediaries Influences from outside Influences on outside Transit Regions & Tourist Flows S.I.
  41. 41. Tourism Supply <ul><li>Tourism Product </li></ul><ul><ul><li>Broad Sense: Destination Features </li></ul></ul><ul><ul><li>Narrow Sense: Tourism Industry/Services at Destination </li></ul></ul>
  42. 42. Components of Product <ul><li>Attractions </li></ul><ul><li>Facilities: Accommodation, Restaurants, .. </li></ul><ul><li>Transport </li></ul><ul><li>Infrastructure </li></ul><ul><li>Hospitality </li></ul>
  43. 43. Typology of Attractions <ul><li>Feature(s) of Natural Environment </li></ul><ul><li>Man-Made, but not designed for attracting visitors (Cathedral) </li></ul><ul><li>Man-Made purpose designed for attracting visitors (Amusement or Theme parks) </li></ul><ul><li>Culture, Customs, Folklore </li></ul><ul><li>Special Events </li></ul><ul><li>Destination Mix: the Combination of Characteristics at a given Destination </li></ul>
  44. 44. Natural Environment <ul><li>Climate </li></ul><ul><li>Beaches </li></ul><ul><li>Caves </li></ul><ul><li>Mountains </li></ul><ul><li>Rivers, Lakes </li></ul><ul><li>Glaciers </li></ul><ul><li>Forests </li></ul><ul><li>Flora & Fauna </li></ul>
  45. 45. Man-made, not specific <ul><li>Churches </li></ul><ul><li>Historic Buildings </li></ul><ul><li>Ancient Ruins </li></ul><ul><li>Historic Gardens </li></ul><ul><li>Steam Railways </li></ul><ul><li>Industrial Archeology </li></ul><ul><li>Reservoirs </li></ul>
  46. 46. Man-made, specific, purpose built <ul><li>Theme Park </li></ul><ul><li>Amusement Park </li></ul><ul><li>Casinos </li></ul><ul><li>Resorts </li></ul><ul><li>Heritage Centers </li></ul><ul><li>Zoo’s, Safari Parks </li></ul><ul><li>Craft Centres </li></ul><ul><li>Marinas </li></ul>
  47. 47. Culture, Customs & Folklore <ul><li>Traditional Costumes </li></ul><ul><li>Markets </li></ul><ul><li>Religion </li></ul><ul><li>Health </li></ul><ul><li>Culinary </li></ul>
  48. 48. Special Events <ul><li>Sporting Events (Olympic Games, World Soccer Cup) </li></ul><ul><li>Cultural Events (Music Festivals) </li></ul>
  49. 49. Destinations and Attractions <ul><li>Single Attraction: </li></ul><ul><ul><li>Brighton (UK) </li></ul></ul><ul><li>Embryonic Destination: </li></ul><ul><ul><li>Waitomo Caves (New Zealand) </li></ul></ul><ul><li>Developed Single Market Destination </li></ul><ul><ul><li>Aruba (Dutch West Indies) </li></ul></ul><ul><li>Diversified Destination </li></ul><ul><ul><li>Florida (USA) </li></ul></ul>
  50. 50. Diversified Destination: Spain <ul><li>Sun, sea, sand </li></ul><ul><li>Culture </li></ul><ul><li>Old Cities </li></ul><ul><li>Nature </li></ul>City of Avila
  51. 51. Attraction as a Product <ul><ul><li>Tourism Product: </li></ul></ul><ul><ul><ul><li>Intangible </li></ul></ul></ul><ul><ul><ul><li>Perishable </li></ul></ul></ul><ul><ul><ul><li>Production = Consumption </li></ul></ul></ul><ul><ul><ul><li>Producers and consumers are part of product </li></ul></ul></ul><ul><ul><ul><li>Not standardized </li></ul></ul></ul><ul><ul><ul><li>Core is free </li></ul></ul></ul><ul><ul><ul><li>Customers don't buy it, but use it temporarily </li></ul></ul></ul>
  52. 52. Product = Experience <ul><li>Anticipation </li></ul><ul><li>Journey to and from </li></ul><ul><li>Visit itself </li></ul><ul><li>Recollection: </li></ul><ul><li>A story to tell back home!! </li></ul>
  53. 53. Product Levels (After Philip Kotler) <ul><li>Core Product: </li></ul><ul><ul><li>Need it satisfies </li></ul></ul><ul><li>Facilitating Product: </li></ul><ul><ul><li>Possibility to use it </li></ul></ul><ul><li>Supporting Product </li></ul><ul><ul><li>Adding value </li></ul></ul><ul><li>Augmented Product </li></ul><ul><ul><li>Atmosphere, Packaging </li></ul></ul><ul><li>Hamburger (Hunger) </li></ul><ul><li>Plate, Seat, Etc. </li></ul><ul><li>Coke </li></ul><ul><li>Service (Happy Meal) </li></ul>
  54. 54. Number of tourists Time Exploration Involvement Development Stagnation Decline Continued Stagnation Rejuvenation Consolidation Destination Life Cycle (R. Butler, 1980)
  55. 55. Stages Life Cycle of a Destination <ul><li>Exploration: A secret spot is discovered, no or few facilities </li></ul><ul><li>Involvement: A few locally-run businesses are established </li></ul><ul><li>Development: A well defined tourism industry is developed. Destination is well promoted </li></ul><ul><li>Consolidation: Tourism becomes an important or even a dominant feature of the local economy </li></ul><ul><li>Stagnation: Tourism growth slows down and carrying capacity is reached. The area is no longer a new hotspot, probably it is overbuilt and polluted </li></ul><ul><li>Decline or Rejuvenation: Decline results as tourists choose other destinations. Rejuvenation typically requires attracting a different kind of tourist and active government support! </li></ul>
  56. 56. Pleasure Periphery <ul><li>Area with popular tourist destinations around the industrial, affluent world. </li></ul><ul><li>Driving force: Social Distinction: </li></ul><ul><li>When a higher social class sees that a lower class is coming to their destination, they depart and look for another. </li></ul><ul><li>In time we see this shift in visitors to a destination: </li></ul><ul><ul><li>Upper Class, (Cultural) Elite, Gentry </li></ul></ul><ul><ul><li>Upper Middle Class </li></ul></ul><ul><ul><li>Mass Tourism </li></ul></ul>
  57. 57. Pleasure Periphery <ul><li>Each main tourist generating region has its own pleasure periphery </li></ul><ul><li>This periphery grows with the arrival of new possibilities (available transport, time, money) </li></ul><ul><li>There is an end to this growth, because earth is not infinite </li></ul><ul><li>There are also overlaps of peripheries of different generating regions: Caribbean (USA & Europe), SE Asia (Europe and Australia) </li></ul><ul><li>To retain their exclusivity, higher classes return to previous visited places, however they indulge there in other, more exclusive activities: social distinction! </li></ul>
  58. 58. Pleasure Peripheries Europe: <ul><li>Start 19 th Century: </li></ul><ul><ul><li>Coastal Areas Britain & North Sea </li></ul></ul><ul><li>End 19 th Century: </li></ul><ul><ul><li>Mediterranean </li></ul></ul><ul><li>1960-ies: </li></ul><ul><ul><li>North Africa, Canary Islands </li></ul></ul><ul><li>1990-ies: </li></ul><ul><ul><li>Caribbean, S.E. Asia </li></ul></ul><ul><li>21 st Century: </li></ul><ul><ul><li>Space or back to the coast? </li></ul></ul>
  59. 59. Pleasure Peripheries USA <ul><li>End 19 th Century: </li></ul><ul><ul><li>East Coast USA: Rhode Island </li></ul></ul><ul><li>Start 20 th Century: </li></ul><ul><ul><li>Florida </li></ul></ul><ul><li>1950-ies: </li></ul><ul><ul><li>Mexico, Caribbean, Hawaii </li></ul></ul><ul><li>1990-ies: </li></ul><ul><ul><li>S.E. Asia, South America </li></ul></ul><ul><li>21 st Century: </li></ul><ul><ul><li>Space or back to Rhode Island? </li></ul></ul>
  60. 60. Pleasure Periphery <ul><li>Here today, gone tomorrow </li></ul>Coney Island (New York): Once a bustling entertainment area, now derelict, but…. Alternative Groups from a cultural elite and develop their own things!
  61. 61. Here today, gone tomorrow <ul><li>Both host population and travel industry need stability to assure: </li></ul><ul><ul><li>Income & Employment </li></ul></ul><ul><ul><li>Tax revenues </li></ul></ul><ul><li>Therefore: </li></ul><ul><ul><li>Planning </li></ul></ul><ul><ul><li>Sustainability </li></ul></ul><ul><li>Benefits and Costs! </li></ul>
  62. 62. Destination Development Models <ul><li>Agents of Development: </li></ul><ul><ul><li>Public Sector </li></ul></ul><ul><ul><li>Private Sector </li></ul></ul><ul><ul><li>Public & Private Partnerships </li></ul></ul><ul><li>Typologies: </li></ul><ul><ul><li>Spontaneous (Costa Brava) </li></ul></ul><ul><ul><li>Integrated (La Plagne, ski resort in French Alps) </li></ul></ul><ul><ul><li>Catalystic (Disney in Florida) </li></ul></ul><ul><li>Creating Customer Loyalty and Sustainability should always be the guideline! </li></ul>
  63. 63. Customer Loyalty High Attachment to Destination Many Return Visits HIGH LOYALS Low Attachment to Destination Many Return Visits SPURIOUS LOYALS High Attachment to Destination Few Return Visits LATENT LOYALS Low Attachment to Destination Few Return Visits LOW LOYALS
  64. 64. Impacts of Tourism <ul><li>Impacts can be either Positive or Negative </li></ul><ul><li>Impacts of Tourism on Destination: </li></ul><ul><ul><li>Spatial </li></ul></ul><ul><ul><li>Economical </li></ul></ul><ul><ul><li>Cultural </li></ul></ul><ul><ul><li>Environmental </li></ul></ul><ul><ul><li>Political </li></ul></ul><ul><ul><li>Social </li></ul></ul>
  65. 65. Costs and Benefits of Tourism <ul><li>Benefits </li></ul><ul><ul><li>Income (wages, tax) </li></ul></ul><ul><ul><li>Employment </li></ul></ul><ul><ul><li>Infrastructure </li></ul></ul><ul><ul><li>Window on the world for locals </li></ul></ul><ul><ul><li>More attention for own environment </li></ul></ul><ul><li>Costs </li></ul><ul><ul><li>Pollution </li></ul></ul><ul><ul><li>Crime </li></ul></ul><ul><ul><li>Import leakages </li></ul></ul><ul><ul><li>Rising prices (food, property) </li></ul></ul><ul><ul><li>Congestion </li></ul></ul>
  66. 66. Index of Irritation (Doxey, 1975) <ul><li>Also called the IRRIDEX </li></ul>Locals express openly irritation at behavior of tourists Antagonism Saturation, attitude of locals becomes more negative Annoyance Visitors are considered a normal thing, contact is formal Apathy Visitors are welcomed Euphoria Description Stages
  67. 67. What is the total impact and which impact do we want? <ul><li>To reach a desired impact on a destination, a clear planning policy is needed </li></ul><ul><li>Aim is of course to maximize the positive impacts and to minimize the negative impacts </li></ul><ul><li>Tourism development must be aimed at sustainability, so that it will last </li></ul>
  68. 68. Principles of Sustainable Tourism <ul><li>Tourism should be blended with local environment and community </li></ul><ul><li>Tourist experience focuses on existing features </li></ul><ul><li>Local ownership </li></ul><ul><li>Local materials and food </li></ul><ul><li>Conservation of resources </li></ul>Encounter of local population and tourists
  69. 69. Product in narrow sense <ul><li>Accommodation </li></ul><ul><ul><li>Type: Resort, City </li></ul></ul><ul><ul><li>Location & Atmosphere </li></ul></ul><ul><ul><li>Concepts: All-suite </li></ul></ul><ul><ul><li>All-Inclusive </li></ul></ul><ul><ul><li>Bed & Breakfast </li></ul></ul><ul><ul><li>Category: Stars </li></ul></ul><ul><li>Restaurants </li></ul><ul><li>Information Services (CVB) </li></ul>
  70. 70. Transportation <ul><li>Train </li></ul><ul><ul><li>Scheduled Trains </li></ul></ul><ul><ul><li>Special Trains (Blue Train) </li></ul></ul><ul><li>Road </li></ul><ul><ul><li>Car (Private and Rental Car) </li></ul></ul><ul><ul><li>Coach </li></ul></ul><ul><li>Water </li></ul><ul><ul><li>Cruises (River / Ocean) </li></ul></ul><ul><ul><li>Ferries </li></ul></ul><ul><li>Air </li></ul><ul><ul><li>Scheduled </li></ul></ul><ul><ul><li>Charter </li></ul></ul>
  71. 71. Quality in Travel <ul><li>Quality is to deliver what you promised </li></ul><ul><li>So make it clear what you are going to deliver </li></ul><ul><li>Quality is objective: amount of complaints </li></ul><ul><li>Quality is subjective: different persons, different standards </li></ul><ul><li>Quality is value based: Price / Quality relation </li></ul>
  72. 72. Hospitality Model Consumer Provider Services Money <ul><li>Needs </li></ul><ul><li>Objectives </li></ul><ul><li>Expectations </li></ul><ul><li>Environment </li></ul><ul><li>Behavior </li></ul><ul><li>Product </li></ul><ul><li>Concept </li></ul>
  73. 73. Quality = Meeting Expectations <ul><li>Expectations are a result of: </li></ul><ul><ul><li>Word of mouth </li></ul></ul><ul><ul><li>Personal needs and objectives </li></ul></ul><ul><ul><li>Past experiences </li></ul></ul><ul><ul><li>Marketing communications </li></ul></ul><ul><li>Expectations are tested in Service Encounter : Moment of Truth </li></ul><ul><li>Expected Quality < > Perceived Quality </li></ul><ul><li>Result: </li></ul><ul><li>Better - Equal - Below? </li></ul>
  74. 74. Reasons for Poor Quality (5 Gaps Model) <ul><li>Consumers Expectations as Perceived by Management </li></ul><ul><li>Translation of Management Perception into Service Quality Specifications </li></ul><ul><li>Service Quality Specifications into Service Delivery </li></ul><ul><li>Communication to Customers of Service Delivery </li></ul><ul><li>Expected Service and Perceived Service </li></ul>Discrepancy between Promise and Actual Product!
  75. 75. Chapter 5 Intermediaries
  76. 76. Intermediaries Demand Supply Intermediaries Influences from outside Influences on outside Transit Regions & Tourist Flows S.I.
  77. 77. Intermediaries <ul><li>Stimulators </li></ul><ul><ul><li>NTO's, Regional & Local Tourist Offices </li></ul></ul><ul><li>Producers </li></ul><ul><ul><li>Tour Operators / Wholesalers </li></ul></ul><ul><li>Distributors </li></ul><ul><ul><li>Travel Agencies </li></ul></ul><ul><li>Facilitators </li></ul><ul><ul><li>Touring Clubs, Banks </li></ul></ul>
  78. 78. The Travel Industry <ul><li>Which players are there? </li></ul><ul><li>How do they interrelate? </li></ul>
  79. 79. Travel Chain Destination Destination Destination Destination Customer Customer Customer Customer T.O. T.O. T.O. D.M.C. D.M.C. T.A. T.O. = Tour Operator / Wholesaler T.A. = Travelagent D.M.C. = Destination Management Company
  80. 80. Main Players: <ul><li>Tour Operators (or Wholesalers): </li></ul><ul><ul><li>They produce tour-packages, which are either sold directly or via: </li></ul></ul><ul><li>Travel Agencies: </li></ul><ul><ul><li>They sell the packages made by touroperators and add other services (like insurance) </li></ul></ul><ul><li>Destination Management Companies: </li></ul><ul><ul><li>Supplier of additional services at destination (like excursions, transfers) </li></ul></ul><ul><ul><li>Eyes and ears of Tour Operator at a destination </li></ul></ul>
  81. 81. Tour Operator / Wholesaler <ul><li>CONCEPT </li></ul><ul><li>REC IPIES </li></ul><ul><li>INGREDI E NT S </li></ul><ul><li>PREPARATION </li></ul><ul><li>BUDGETTING </li></ul><ul><li>PROMOTION </li></ul><ul><li>MENU CARD </li></ul><ul><li>SERVING THE MEAL </li></ul><ul><li>CONTACT WITH CLIENTS </li></ul><ul><li>AFTER SALES </li></ul>Compare it with a restaurant!
  82. 82. Tour Operator: Added Value <ul><li>Selecting and packaging holiday elements </li></ul><ul><li>Promoting and distributing them </li></ul><ul><li>Offering prices un-obtainable by consumers </li></ul><ul><li>Providing information </li></ul><ul><li>Setting and Monitoring quality standards </li></ul><ul><li>Organizing extra’s: excursions, entertainment </li></ul><ul><li>Risk brokerage for both resellers and consumers </li></ul><ul><li>Managing relations with principals </li></ul>
  83. 83. Types of Tour Operators <ul><li>Mass Tour Operator </li></ul><ul><ul><li>High Volume </li></ul></ul><ul><ul><li>Well known Destinations </li></ul></ul><ul><ul><li>Wide Public Appeal </li></ul></ul><ul><ul><li>Available through T.A </li></ul></ul><ul><ul><li>Slow response to changing markets (long term commitments) </li></ul></ul><ul><ul><li>Integration (hotels, transport, agencies) </li></ul></ul><ul><ul><li>Low buying rates and prices </li></ul></ul><ul><li>Specialists </li></ul><ul><ul><li>Low volumes </li></ul></ul><ul><ul><li>Exotic Destinations </li></ul></ul><ul><ul><li>Appeal to niche markets </li></ul></ul><ul><ul><li>Local Style and owned Accommodation </li></ul></ul><ul><ul><li>Direct Sellers </li></ul></ul><ul><ul><li>Quick response to new market trends </li></ul></ul><ul><ul><li>Higher buying rates and selling prices </li></ul></ul>
  84. 84. Travel Agencies <ul><li>Two Main Types: </li></ul><ul><ul><li>Leisure Travel Services </li></ul></ul><ul><ul><li>Business Travel Services </li></ul></ul>
  85. 85. Travel Agencies: Leisure <ul><li>General Bricks and Mortar (‘High Street’) </li></ul><ul><ul><li>Independent Chains </li></ul></ul><ul><ul><li>Pop and mom’s </li></ul></ul><ul><ul><li>Touroperator owned </li></ul></ul><ul><ul><li>Franchises </li></ul></ul><ul><li>Home Based Agents </li></ul><ul><li>Niche Agencies </li></ul><ul><li>Virtual Agencies: Expedia, Travelocity, … </li></ul>
  86. 86. Travel Agencies: Business <ul><li>Travel Management Companies </li></ul><ul><ul><li>Multi National Companies </li></ul></ul><ul><ul><li>Nationals </li></ul></ul><ul><li>Corporate Agencies: Implants (An agency within a client’s company) </li></ul><ul><li>From sellers of tickets to travel amangers </li></ul><ul><li>Earnings: no commissions, but transaction fees </li></ul>
  87. 87. Travel Agents Added Value (1) <ul><li>Assistance in search and information </li></ul><ul><li>Objective and unbiased advice </li></ul><ul><li>Needs assessment and product matching </li></ul><ul><li>Customer risk management </li></ul><ul><li>Product distribution </li></ul><ul><li>Additional services </li></ul><ul><li>After sales: advice with complaints </li></ul>
  88. 88. Travel Agents Added Value (2) <ul><li>Dissemination of product information </li></ul><ul><li>Purchase influence </li></ul><ul><li>Provision of customer and market information </li></ul><ul><li>Producer risk management </li></ul><ul><li>Transaction economies of scale </li></ul><ul><li>Integration of producer and consumer needs </li></ul><ul><li>Savings on marketing costs </li></ul>
  89. 89. Marketing in Tourism (4 P’s) <ul><li>P roduct </li></ul><ul><li>P romotion </li></ul><ul><li>P rice </li></ul><ul><li>P lace: Most Important Change! </li></ul><ul><ul><li>Place = Distribution of the Product: </li></ul></ul><ul><ul><li>On-Line vs. Off-Line </li></ul></ul><ul><ul><li>Direct vs. Indirect </li></ul></ul><ul><ul><li>New Customers vs. Retaining Old Customers </li></ul></ul>
  90. 90. Distribution is part of Marketing <ul><li>Development of Tourism Marketing: </li></ul><ul><ul><li>1950’s: Mass Market: The Tourist </li></ul></ul><ul><ul><li>1960’s: Simple Market Segmentation: Old People </li></ul></ul><ul><ul><li>1980’s: Multilevel Segmentation: Wealthy Old People </li></ul></ul><ul><ul><li>1990’s: Niche Markets: Wealthy Old People who love to walk </li></ul></ul><ul><ul><li>2000’s: Markets of One: Long Tail </li></ul></ul>
  91. 91. Examples of Market Segmentation Mass market 1960s – 1970s: The Tourists (No segmentation) Simple market segmentation 1980s: Older Couples – Younger Couples Multilevel segmentation 1990s: Wealthy Older Couples Ethnic Older Couples Niche markets & Markets of One 2000s: Postal Code & Mr. Johnson
  92. 92. What is the Long Tail? <ul><li>The Long Tail is: </li></ul><ul><ul><li>A huge offer of single items </li></ul></ul><ul><ul><li>which are each of interest to specific small groups or niches, </li></ul></ul><ul><ul><li>but whose total market-potential is bigger than that of the market-leader! </li></ul></ul><ul><li>Since ICT today is characterized by: </li></ul><ul><ul><li>Cheap and fast processors </li></ul></ul><ul><ul><li>Cheap data-storage </li></ul></ul><ul><ul><li>High speed data-transmission </li></ul></ul><ul><ul><li>Hugh bandwidth </li></ul></ul><ul><li>It is now possible to store, assemble and distribute huge inventories of transportation, lodging, ancillary services, etc. </li></ul><ul><li>Needs of any niche market can be satisfied </li></ul>
  93. 93. Visitor volume Examples of Purpose of Visits General City Trip Barcelona Architecture by Gaudi The Long Tail in Tourism Art, Culture and Food
  94. 94. Distribution Models <ul><li>Traditional Distribution Chain: Off-line </li></ul><ul><ul><li>“ Bricks and Mortar” </li></ul></ul><ul><li>New Distribution Chain: On-Line (Cybermediaries) </li></ul><ul><ul><li>“ Clicks” </li></ul></ul><ul><li>Emerging Distribution Chain: Multi-Channels </li></ul><ul><ul><li>“ Bricks and Clicks” </li></ul></ul>
  95. 95. Distribution Models Direct Off-Line Direct On-Line Indirect Off-Line Indirect On-Line
  96. 96. Dynamics in the Travel Industry <ul><li>All players have to add value </li></ul><ul><li>If a member of the distribution chain does not add value to the product or service, then his function is parasitic and, as a result, he will eventually disappear! </li></ul><ul><li>TRENDS: </li></ul><ul><li>De-intermediation (Internet) </li></ul><ul><li>Globalization </li></ul><ul><li>Integration (Horizontal, Vertical, Diagonal) </li></ul><ul><li>Increased Scale of Operations </li></ul><ul><li>Home-based Travel Agents (like ‘Tupperware Ladies’) </li></ul><ul><li>Role of Social Media & User Generated Content (like Tripadvisor) </li></ul><ul><li>So Rethinking of Business Processess </li></ul>
  97. 97. Chapter 6 Transit Regions and Tourist Flows
  98. 98. Transit Regions & Tourist Flows Demand Supply Intermediaries Influences from outside Influences on outside Transit Regions & Tourist Flows S.I.
  99. 99. Tourist Flows What happens when a road is redirected? <ul><li>Seasonality </li></ul><ul><li>Intensity </li></ul><ul><li>Direction </li></ul><ul><li>Distance </li></ul>
  100. 100. Chapter 7 Supporting Institutions
  101. 101. Supporting Institutions Demand Supply Intermediaries Influences from outside Influences on outside Transit Regions & Tourist Flows S.I. S.I.
  102. 102. Supporting Institutions <ul><li>United Nations : UNWTO </li></ul><ul><li>Universities: Research </li></ul><ul><li>Education & Training </li></ul><ul><li>Consumer Organizations </li></ul><ul><li>.............. </li></ul>
  103. 103. Chapter 8 External Environments
  104. 104. External Environments Demand Supply Intermediaries Influences from outside Influences on outside Transit Regions & Tourist Flows S.I.
  105. 105. External Environments <ul><li>Political </li></ul><ul><li>Economic </li></ul><ul><li>Social </li></ul><ul><li>Environmental </li></ul><ul><li>Technological </li></ul><ul><li>Demographic </li></ul>September 11 Financial Crisis
  106. 106. Influence of Technology Trans Pacific Transport System: Range of Planes FIFTIES: 2 Stops in Nadi & Honolulu EIGHTIES: 1 Stop in Honolulu NOW: Non-stop Effects on Nadi and Honolulu? Effects on tourism between USA and Australia?
  107. 107. Technology: Influence on Tourism System <ul><li>Internet </li></ul><ul><ul><li>Changed production of tourism products </li></ul></ul><ul><ul><ul><li>Mass Customization </li></ul></ul></ul><ul><ul><ul><li>Dynamic Packaging </li></ul></ul></ul><ul><ul><li>Changed distribution of tourism products </li></ul></ul><ul><ul><li>User Generated Content (Blogs, Facebook, You Tube, ..) </li></ul></ul><ul><li>ICT: </li></ul><ul><ul><li>Processing power of chips much increased </li></ul></ul><ul><ul><li>Data storage at extreme low costs </li></ul></ul><ul><ul><li>Date transmission with enormous speed and bandwidth </li></ul></ul><ul><ul><li>All this at still lower costs! </li></ul></ul>
  108. 108. The Tourism System Demand Supply Intermediaries Influences from outside Influences on outside Transit Regions & Tourist Flows S.I.
  109. 109. About Magiel Venema <ul><li>Lecturer (retired) at NHTV Breda University of Applied Sciences (Netherlands) </li></ul><ul><li>Tourism Education Consultant with P.U.M. (Dutch NGO) </li></ul><ul><li>Director of Edutour ( ) </li></ul><ul><ul><li>Tourism Textbooks Author and Publisher </li></ul></ul><ul><ul><li>Training and Simulation Software for Tourism and Hospitality Education </li></ul></ul>
  110. 110. Acknowledgements <ul><li>Unless otherwise specified, all illustrations are from the author’s archive; </li></ul><ul><li>Other illustrations are either Public Domain or used under a Creative Commons License; </li></ul><ul><li>More info: </li></ul>