Introduction Tourism System (NEW VERSION 2017)

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An overview of Travel and Tourism for those interested in gaining more knowledge about this industry, like tourism students of colleges and universities. It builds an introductory understanding of travel and tourism as an area of study, It highlights all factors which are part of the Tourism System and explains the dynamics of the industry. Important concepts of supply, demand, destinations and players and their business models, are covered in an easy to understand way.

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  • Introduction Tourism System (NEW VERSION 2017)

    1. 1. An Introduction to Tourism Magiel Venema Revised 2017 Edition © 2017 Edutour BV
    2. 2. 2 ‘Teachers Only’ Slides Slides where this ‘cap’ is shown, are for teacher’s reference only! They are disabled as ‘hidden slides’ in the full version. So if you want to preview the presentation, please use the Normal View or the Slide Sort View
    3. 3. 3 Content 1. Teacher’s Introduction 2. The Tourism System 3. Tourism Demand 4. Tourism Supply 5. Intermediaries 6. Transit Regions and Tourism Flows 7. Supporting Institutions 8. External Environments Acknowledgements
    4. 4. 4 About Edutour • Edutour was founded in 1989 by Magiel Venema; • Senior lecturer at NHTV Breda University of Applied Sciences (Netherlands); • Author of many textbooks about travel and tourism; • Tourism Vocational Education expert with PUM (a Dutch NGO).
    5. 5. 5 Some notes for teachers • This is a generic presentation. • This means it can be used alongside most introductory textbooks; • Users are free to add or to skip slides; • Where relevant and possible, hyperlinks are included for direct access to remarks, extra’s, e-mail, etc.; • Right-click on the link, then click ‘Open Hyperlink’; • Any comments and suggestions are more than welcome at info@edutour.nl.
    6. 6. 6 Why this presentation? • Many students start their tourism studies without a clear idea about what they are going to study; • This presentation helps them to get them immersed in their chosen field of studies.
    7. 7. 7 Aim of the Presentation • To learn what Tourism Studies are about; • To learn what Tourism is about; • To get acquainted with some main concepts in Tourism Studies; • To get acquainted with the main players in Tourism; • To comprehend the relationships between the main players; • To understand the interdependence between Society and Tourism.
    8. 8. 8 The Structure of the Presentation The presentation is built upon ‘The Tourism System’ by Neil Leiper; Each component of the system is a separate chapter; The components are changing over time; The connections between the components make the system dynamic (= ever changing).
    9. 9. 9 Final remark • It is assumed that you are familiar with most of the presented concepts in this Power Point; • However, to facilitate your task, each chapter starts with some references related to the subjects of that chapter (if available, together with a web-link). • Enjoy!
    10. 10. 10 Chapters 1. Introduction 2. The Tourism System 3. Tourism Demand 4. Tourism Supply 5. Intermediaries 6. Transit Regions and Tourism Flows 7. Supporting Institutions 8. External Environments Acknowledgements
    11. 11. Chapter 1 Introduction Tourism at first sight
    12. 12. 12 © Edutour 2017 Background • Definitions of Tourism are described in-depth by the UNWTO (expertly compiled by Tugberk Ugurlu); • Wikipedia gives of course also information; • See also the information by The Tourism Society; • A good overview is also given by Ron Mader on Planeta.
    13. 13. 13 What is behind all this and is that all there is? Tourists Cruise Ship Attractions & Destinations But there is much, much more …………………
    14. 14. 14 The answer: what the pictures don’t show…... • Companies: Hotels, Transport, Travel Agencies, …. • Organizations: Information Services, …. • People: Management, Front Office, …. • Tourists: Needs, Wants, Behavior, …. • Governments: Laws, Subsidies, …. • Politics: Terrorism, …. • Economy: Income, Employment, …. • Society: Norms, Values, …. • Technology: Reservation Systems, Internet, .… • Together THE TOURISM SYSTEM
    15. 15. 15 Official Definition of Tourism • The United Nations World Tourism Organization (UNWTO) defines tourism as follows: • Tourism comprises the activities of persons traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes.
    16. 16. 16 Main Characteristics of Definition 1. Activities of People; 2. Displacement outside usual environment; 3. Purpose of the trip; 4. Duration.
    17. 17. 17 Does it make more sense now? • Tourism comprises the activities of persons traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes.
    18. 18. Chapter 2 The Tourism System
    19. 19. 19 • The Tourism System is adapted from the model made by Neil Leiper (1979 and 1990); • Leiper emphasized the spatial aspects (tourism generating region, destination region and transit regions). This presentation however, focuses on Demand, Supply and the Intermediate Institutions and Businesses; • Source: Annals of Tourism Research, Vol. 8, Issue 1, p. 69-84; • An introduction to Systems, can be found on Wikipedia; • Old and New Tourism, Old and New Tourists are described in ‘Tourism, Technology and Competitive Strategies’ by Auliana Poon (1993). In an article ‘The New Age of Tourism – And the New Tourist’ Dr. Aparna Raj has summarized the concept of Auliana Poon. Background
    20. 20. 20 First: What is a System? In a system, all separate parts perform together to make it function. Each separate part alone is of no use!
    21. 21. 21 What is a System? • Something that has parts: Components; • Which are Interrelated; • And which are changing in time: Dynamic; • And what is part of Society: External Environment. • Components of a System are Interrelated, so they influence each other. The System also receives and sends influences from and to the External Enviroment. • Because over time, Components change, Interrelations change and Society changes, so the system changes, making it Dynamic!
    22. 22. 22 A Car as an example of a System What makes a system? • Components • Interrelated • Dynamic (Changing) • External Environment • 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.
    23. 23. 23 Tourism as a System • Components: Tourists, Companies, Destinations; • Interrelated: Supply and Demand; • Dynamics: Nature of Tourism changes over the years; • External Environment: Political, Economical, Social and Technological Factors (PEST) influence and are influenced by Tourism.
    24. 24. 24 Is Tourism Dynamic? • Tourism in the recent past: OLD TOURISM: – Travel industry was in charge – Tourists were followers – Focused on attractions • Tourism today: NEW TOURISM: – Consumer is in charge – Tourists know what they want – Focused on experiences • OLD -> NEW: CHANGE = DYNAMIC
    25. 25. 25 Characteristics of ‘Old Tourism’ • Paid Holidays; • Start of Economic Growth: Higher Income; • Jet Aircraft, Cheap Charter Flights; • Sun-lust Tourists; • Mass Tourism, Package Tours; • Entrance of Multi National Companies in travel industry (like TUI, Expedia).
    26. 26. 26 Some Characteristics of ‘New Tourism’ (starting at the end of 20th Century): • Increased travel experience; • Heavy media exposure (TV, Internet, Twitter, YouTube, ....); • Always Online (Smart Phone, iPad, ….); • Experiences more important than passive sunbathing; • New production and distribution methods: Shift from Business to Consumer (B2C) to Consumer to Consumer (C2C), like Airbnb and Uber; • Attention for environment and sustainability.
    27. 27. 27 OK, let’s study the Tourism System! In the next chapters we will take a closer look at the Components, Interrelations, Dynamics and External Environments of TOURISM! Tourists at a Destination Airport Dynamics: Old Tourism New Tourism Attitude of External Environment
    28. 28. 28 The Tourism System: Components, Interrelations and Environment Demand Supply Intermediaries Influences from outside world Influences on outside world Transit Regions & Tourist Flows Supporting Institutions
    29. 29. Chapter 3 Tourism Demand
    30. 30. 30 Tourism Demand Demand Supply Intermediaries Influences from outside Influences on outside Transit Regions & Tourist Flows S.I. S.I.
    31. 31. 31 Background Demand • Definitions: UNWTO • Maslow: Hierarchy of Needs: Wikipedia • Plog (Original): Psychographic Personality Types • Plog (Revisited): New Typology • Cohen: Exploration of Travel Experience • MICE: Meetings, Incentives, Conferencing, Events & Exhibition • We have, in this stage, refrained from presenting a lot of statistics. This will make more sense later. However, if you are interested, visit the UNWTO website.
    32. 32. 32 We will start with the Demand • Demand = Tourists – Effective Demand: Those who can and do – Potential Demand: Those who can, but don’t do it yet – Deferred Demand: Those who can and normally do, but not now for some reason – No Demand: Those who can’t do and won’t do it • Why study Demand? – Product Development – Marketing Purposes
    33. 33. 33 The importance of international tourism • The importance of international tourism is measured as follows: – Arrivals: 1.184.000.000 (2015) – Expenditures (USD) 1.274.940.000.000 (2015) • What does this mean? – World population >7.000.000.000 (2015) – Per person (in USD) 182.00!
    34. 34. 34 2015 World’s Top 10 Tourism Destinations Source: Wikipedia
    35. 35. 35 Definition of a Tourist • Tourists are people who 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. (UNWTO, 1995)
    36. 36. 36 A more easy definition? A tourist is a temporary leisured person who voluntarily visits a place away from home for the purpose of experiencing a change. • Time: Temporary • Choice: Voluntarily • Destination: Away from Home • Motivation: Experience
    37. 37. 37 Why do people travel at all? • Push Factors: Why go? – Needs and Wants – Self-fulfillment – To learn and to experience • Pull Factors: Why there? – Attractions in destination – Needs and wants fulfillment – Gains: real or perceived!
    38. 38. 38 Analyzing the Demand • Quantitative Aspects – How many? – When? – How often? – How do they travel and where do they stay? – How long do they stay? – How much money did they spent? – How and where to? • Qualitative Aspects – Motivation – Composition – Typologies – Life styles
    39. 39. 39 The Demand • Quantitative Aspects – How many? – Where to? – When? – Ages? – How often? – From where? – Type of Transportation? – Type of Accommodation? – Spending? – Etc.
    40. 40. 40 Statistics • Quantitative Aspects are found in statistics – International Statistics (UNWTO) – National Statistics • Source for Planning and Marketing!
    41. 41. 41 The Demand Qualitative Aspects • Composition • Typologies • Norms and Values • Life Style • Behavior
    42. 42. 42 Maslow’s needs and motivations 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. From low to high he distinguishes the following needs: • Physiological: Relaxation (Rest, Sunlust) • Safety: Security (Health) • Belonging: Love (Togetherness, Roots) • Esteem: Status (Recognition) • Self-Actualization: Be yourself (Self-discovery)
    43. 43. 43 Maslow’s Hierarchy of Needs
    44. 44. 44 Plog’s Typology of Tourists (Stanley Plog, 1974) • Allocentrics: ‘other-centered’ tourists who enjoy exposing themselves to other cultures and new experiences, and are willing to take risks in this process • Psychocentrics: ‘self-centered’ tourists who prefer familiar and risk averse experiences • Midcentrics: ‘average’ tourists whose personality type is a compromise between allocentric and psychocentric traits
    45. 45. 45 %ofPopulation Psychocentric Nearpsychocentric Nearallocentric Allocentric More familiar destinations Exotic destinations Midcentric Plogs Typology of Tourists
    46. 46. 46 Plogs Typology of Tourists • Psychocentrics – Familiar Destinations – Traditional Activities – Tour Packages – Looking for Safety • ‘OLD’ TOURISTS • Allocentrics – Exotic Destinations – Discovery – Independent – More Adventurous • ‘NEW’ TOURISTS Link between Type of Tourists and Type of Destination
    47. 47. 47 %ofPopulation Familiar destinations Exotic destinations Dynamics: Once Exotic Destinations become Mass Destinations! Plogs Typology of Tourists Shift of Time
    48. 48. 48 Plog’s Typology Revisited • Plog modernized his famous typology into personality types: • VENTURERS (Allocentrics) – Venturers – Pioneers – Voyagers • AUTHENTICS (Psychocentrics) – Journeyers – Sightseers – Traditionals
    49. 49. 49 Old and New Tourists • Old Tourists (Venturers): – Looking for luxury, glamour, brand names – To relax and to be pampered – LOOKING FOR A REST • New Tourists (Authentics): – Tired of sameness of resorts, hotels – Prefer characater and authenticity – Like to mix with the local community – LOOKING FOR AN EXPERIENCE
    50. 50. 50 Change of a destination: Acapulco (México) From a tiny fishing village into this…….. There are many Acapulco’s in the world!
    51. 51. 51 Types of Tourists (After E. Cohen, 1972) • Based upon both the interaction with local population and the use of travel industry – Drifters – Explorers – Individual Mass Tourists – Organized Mass Tourists
    52. 52. 52 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
    53. 53. 53 Business & Leisure Travel • No clear distinction between business and leisure in definitions: • Business Travel: Trips made by those who are required to travel in relation to their work.
    54. 54. 54 Types of Business Travelers • Individual Business Travelers: – Sales, Service, Training,….. • Corporate Hospitality (Grand Prix, Sky Box) • Meetings • Incentives • Conferences • Exhibitions / Events Most of the time referred to as MICE
    55. 55. Chapter 4 Tourism Supply
    56. 56. 56 Tourism Supply Demand Supply Intermediaries Influences from outside Influences on outside Transit Regions & Tourist Flows S.I.
    57. 57. 57 Background Tourism Supply • Tourist Product Characteristics • Tourist Attractions (General) • Role of Attractions • Product Levels Philip Kotler • Butler’s Destination Life Cycle • Pleasure Periphery: Social Distinction • Tourism Impacts • Irritation Index (Irridex) by Doxey • Sustainable Tourism • Quality (5-Gap Servqual Model)
    58. 58. 58 Tourism Supply • Tourism Product – Broad Sense: Destination Features – Narrow Sense: Tourism Industry/Services at Destination
    59. 59. 59 Characteristics Tourist Product • Intangible: No change of ownership, it is an experience • Inflexible: Capacity hotel, restaurant, plane is fixed, no quick adaption to change in demand is possible • Perishable: Exists only when customer is present • Co-producership Supplier <-> User • Location tied • Heterogeneous: Combination of experiences, services and goods
    60. 60. 60 What is in the Tourism Product? • Resources: Natural en Man-made • General and Tourism Infrastructure • Receptive facilities • Entertainment facilities • Local Tourism Industry After Alberto Sessa (1983)
    61. 61. 61 Components of Product • Destination with attractions • Facilities: Accommodation, Restaurants, .. • Transport • Infrastructure • Hospitality
    62. 62. 62 Typology of Resources • Feature(s) of Natural Environment • Man-Made, but not designed for attracting visitors (Cathedral) • Man-Made, purpose designed for attracting visitors (Amusement or Theme parks) • Culture, Customs, Folklore • Special Events Destination Mix: the Combination of Attractions at a given Destination
    63. 63. 63 Natural Environment • Climate • Geology • Beaches • Caves • Mountains • Rivers, Lakes • Glaciers • Forests • Flora & Fauna
    64. 64. 64 Man-made, not specific • Archeology • Churches • Historic Buildings • Ancient Ruins • Historic Gardens • Steam Railways • Industrial Heritage • Reservoirs
    65. 65. 65 Man-made, specific, purpose built • Theme Park • Amusement Park • Casinos • Resorts • Heritage Centers • Zoo’s, Safari Parks • Craft Centres • Marinas
    66. 66. 66 Culture, Customs & Folklore • Traditional Costumes • Markets • Religion • Health • Culinary
    67. 67. 67 Special Events • Sporting Events (Olympic Games, World Soccer Cup) • Cultural Events (Music Festivals)
    68. 68. 68 Development of Attractions: (John Swarbrooke) • Single Attraction: – Brighton (UK) • Embryonic Destination: Services develop around the single attraction; – Waitomo Caves (New Zealand) • Developed Single Market Destination: Other attractions, designed for the same market; – Aruba (Dutch West Indies) • Diversified Destination: Other attractions, designed for new markets – Costa Brava (Spain)
    69. 69. 69 Diversified Destination: Spain • Sun, sea, sand • Culture • Old Cities • Nature City of Avila
    70. 70. 70 Attraction as a Product Tourism Product: • Intangible • Perishable • Production = Consumption • Producers and consumers are part of product • Not standardized • Core is free • Customers don't buy it, but use it temporarily
    71. 71. 71 Product = Experience • Anticipation • Journey to and from • Visit itself • Recollection: A story to tell back home!!
    72. 72. 72 Product Levels (After Philip Kotler) • Core Product: Basic need it satisfies • Tangible Product: Product itself: quality, branding, packaging • Augmented Product Intangible benefits, Help Desk, Status •Hamburger (Hunger) •Plate, Seat, Etc. •Coke •Service (Happy Meal)
    73. 73. 73 Product Levels • Can you recognize the three levels of this product?
    74. 74. 74 Numberoftourists Time Exploration Involvement Development Stagnation Decline Continued Stagnation Rejuvenation Consolidation Destination Life Cycle (R. Butler, 1980)
    75. 75. 75 Stages Life Cycle of a Destination 1. Exploration: A secret spot is discovered, no or few facilities 2. Involvement: A few locally-run businesses are established 3. Development: A well defined tourism industry is developed. Destination is well promoted 4. Consolidation: Tourism becomes an important or even a dominant feature of the local economy 5. Stagnation: Tourism growth slows down and carrying capacity is reached. The area is no longer a new hotspot, probably it is overbuilt and polluted 6. Decline or Rejuvenation: Decline results as tourists choose other destinations. Rejuvenation typically requires attracting a different kind of tourist and active government support!
    76. 76. 76 Pleasure Periphery • Area with popular tourist destinations around the industrial, affluent world. • Driving force is Social Distinction • When a higher social class sees that a lower class is coming to their destination, they depart and look for another place elsewhere. • In time, we see this shift in visitors to a destination: – Upper Class, (Cultural) Elite, Gentry – Upper Middle Class – Mass Tourism
    77. 77. 77 Pleasure Periphery • Each main tourist generating region has its own pleasure periphery • This periphery grows with the arrival of new possibilities (available transport, time, money) • There is an end to this growth, because earth is not infinite • There are also overlaps of peripheries of different generating regions: Caribbean (USA & Europe), SE Asia (Europe and Australia) • To retain their exclusivity, higher classes return to previous visited places, however they indulge there in other, more exclusive activities: social distinction!
    78. 78. 78 Pleasure Peripheries Europe: • Start 19th Century: – Coastal Areas Britain & North Sea • End 19th Century: – Mediterranean • 1960-ies: – North Africa, Canary Islands • 1990-ies: – Caribbean, S.E. Asia • 21st Century: – Space or back to the coast?
    79. 79. 79 Pleasure Peripheries USA • End 19th Century: – East Coast USA: Rhode Island • Start 20th Century: – Florida • 1950-ies: – Mexico, Caribbean, Hawaii • 1990-ies: – S.E. Asia, South America • 21st Century: – Space or back to Rhode Island?
    80. 80. 80 Pleasure Periphery • Here today, gone tomorrow Coney Island (New York): Once a bustling entertainment area, now derelict, but…. Alternative Groups from a cultural elite and develop their own things!
    81. 81. 81 Here today, gone tomorrow • Both host population and travel industry need stability to assure: – Income & Employment – Safeguarding Environment – Tax revenues • Therefore: – Planning – Sustainability • Benefits and Costs!
    82. 82. 82 Destination Development Models • Agents of Development: – Public Sector – Private Sector – Public & Private Partnerships • Typologies: – Spontaneous (Costa Brava) – Integrated (La Plagne, ski resort in French Alps) – Catalystic (Disney in Florida) • Creating Customer Loyalty and Sustainability should always be the guideline!
    83. 83. 83 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
    84. 84. 84 Impacts of Tourism • Impacts can be either Positive or Negative • Impacts of Tourism on Destination: – Spatial – Economical – Cultural – Environmental – Political – Social
    85. 85. 85 Costs and Benefits of Tourism • Benefits – Income (wages, tax) – Employment – Infrastructure – Window on the world for locals – More attention for own environment • Costs – Pollution – Crime – Import leakages – Rising prices (food, property) – Congestion
    86. 86. 86 Index of Irritation (Doxey, 1975) • Also called the IRRIDEX Stages Description Euphoria Visitors are welcomed Apathy Visitors are considered a normal thing, contact is formal Annoyance Saturation, attitude of locals becomes more negative Antagonism Locals express openly irritation at behavior of tourists
    87. 87. 87 What is the total impact and which impact do we want? • To reach a desired impact on a destination, a clear planning policy is needed • Aim is of course to maximize the positive impacts and to minimize the negative impacts • Tourism development must be aimed at sustainability, so that it will last
    88. 88. 88 Principles of Sustainable Tourism • Tourism should be blended with local environment and community • Tourist experience focuses on existing features • Local ownership • Local materials and food • Conservation of resources Encounter of local population and tourists
    89. 89. 89 Product in narrow sense • Accommodation – Type: Resort, City – Location & Atmosphere – Concepts: All-suite All-Inclusive Bed & Breakfast – Category: Stars • Restaurants • Information Services (CVB)
    90. 90. 90 Transportation • Train – Scheduled Trains – Special Trains (Blue Train) • Road – Car (Private and Rental Car) – Coach • Water – Cruises (River / Ocean) – Ferries • Air – Scheduled – Charter
    91. 91. 91 Quality in Travel • Quality is to deliver what you promised • So make it clear what you are going to deliver • Quality is objective: amount of complaints • Quality is subjective: different persons, different standards • Quality is value based: Price / Quality relation
    92. 92. 92 Hospitality Model Consumer Provider Services Money •Needs •Objectives •Expectations •Environment •Behavior •Product •Concept
    93. 93. 93 Quality = Meeting Expectations • Expectations are a result of: – Word of mouth – Personal needs and objectives – Past experiences – Marketing communications • Expectations are tested in Service Encounter : Moment of Truth • Expected Quality < > Perceived Quality • Result: • Better - Equal - Below?
    94. 94. 94 Reasons for Poor Quality (5 Gaps Model) • Consumers Expectations as Perceived by Management • Translation of Management Perception into Service Quality Specifications • Service Quality Specifications into Service Delivery • Communication to Customers of Service Delivery • Expected Service and Perceived Service Discrepancy between Promise and Actual Product!
    95. 95. Chapter 5 Intermediaries
    96. 96. 96 Intermediaries Demand Supply Intermediaries Influences from outside Influences on outside Transit Regions & Tourist Flows S.I.
    97. 97. 97 Background Intermediaries • NTO's, Regional & Local Tourist Offices • Tour Operators / Wholesalers • Travel Agencies • Destination Management Companies • Facilitators • Changing Roles • New Players
    98. 98. 98 Intermediaries • Stimulators – NTO's, Regional & Local Tourist Offices • Producers – Tour Operators / Wholesalers • Distributors – Travel Agencies • Facilitators – Touring Clubs, Banks, Educators
    99. 99. 99 Stimulators • National level: – NTO: National Tourism Organization • Tasks: – Formulation and implementation of a national tourism policy • Government or Private or Mixed Organization • Each country does it on its own way
    100. 100. 100 Basic NTO Functions (Varies by country) • Formulating and implementing National Tourism Policy; • Licensing of companies (travel agencies, guides, ..); • Research; • Marketing and Promotion; • Commercial and Promotional offices both in home country and abroad; • Hotel and Restaurant classification systems; • Fostering partnership between attractions, travel agencies; • Coordination of local and regional programs; • Promote tourist consciousness in own country; • …..
    101. 101. 101 Regional and Local Tourism Organizations • Regional and Local Tourism Organizations are in general, private sector, membership- based bodies that play a role in marketing and coordinating the efforts of industry, local government and the community to grow tourism. • Most of them operate Visitor Information Centers at centrally located places
    102. 102. 102 Regional and Local Tourist Offices • Information for visitors; • Promotion of the region/city; • Organizing regional/local events • Signage and trails; • Location at central places
    103. 103. 103 The Travel Industry • Which players are there? • How do they interrelate?
    104. 104. 104 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
    105. 105. 105 Main Players: • Tour Operators (or Wholesalers): – They produce tour-packages, which are either sold directly or via: • Travel Agencies: – They sell the packages made by touroperators and add other services (like insurance) • Destination Management Companies: – Supplier of additional services at destination (like excursions, transfers) – Eyes and ears of Tour Operator at a destination
    106. 106. 106 Tour Operator / Wholesaler •CONCEPT •RECIPIES •INGREDIENTS •PREPARATION •BUDGETTING •PROMOTION •MENU CARD •SERVING THE MEAL •CONTACT WITH CLIENTS •AFTER SALES Compare it with a restaurant!
    107. 107. 107 Tour Operator: Added Value • Selecting and packaging holiday elements • Promoting and distributing them • Offering prices un-obtainable by consumers • Providing information • Setting and Monitoring quality standards • Organizing extra’s: excursions, entertainment • Risk brokerage for both resellers and consumers • Managing relations with principals
    108. 108. 108 Types of Tour Operators • Mass Tour Operator – High Volume – Well known Destinations – Wide Public Appeal – Available through T.A – Slow response to changing markets (long term commitments) – Integration (hotels, transport, agencies) – Low buying rates and prices • Specialists – Low volumes – Exotic Destinations – Appeal to niche markets – Local Style and owned Accommodation – Direct Sellers – Quick response to new market trends – Higher buying rates and selling prices
    109. 109. 109 Travel Agencies • Two Main Types: – Leisure Travel Services – Business Travel Services
    110. 110. 110 Travel Agencies: Leisure • General Bricks and Mortar (‘High Street’) – Independent Chains – Pop and mom’s – Touroperator owned – Franchises • Home Based Agents • Niche Agencies • OnLine Travel Agencies (OTA): Expedia, Travelocity, • Hybrid: Bricks and Clicks
    111. 111. 111 Travel Agencies: Business • Travel Management Companies – Multi National Companies – Nationals • Corporate Agencies: Implants (An agency within a client’s company) • From sellers of tickets to travel managers • Earnings: no commissions, but a fee per transaction
    112. 112. 112 Travel Agents Added Value (1) • Assistance in search and information • Objective and unbiased advice • Needs assessment and product matching • Customer risk management • Product distribution • Additional services • After sales: advice with complaints
    113. 113. 113 Travel Agents Added Value (2) • Dissemination of product information • Purchase influence • Provision of customer and market information • Producer risk management • Transaction economies of scale • Integration of producer and consumer needs • Savings on marketing costs
    114. 114. 114 Marketing in Tourism (4 P’s) • Product • Promotion • Price • Place: Most Important Change! – Place = Distribution of the Product: – On-Line vs. Off-Line – Direct vs. Indirect – New Customers vs. Retaining Old Customers
    115. 115. 115 Distribution is part of Marketing • Development of Tourism Marketing: – 1950’s:Mass Market: The Tourist – 1960’s:Simple Market Segmentation: Old People – 1980’s:Multilevel Segmentation: Wealthy Old People – 1990’s:Niche Markets: Wealthy Old People who love to walk – 2000’s:Markets of One: Long Tail
    116. 116. 116 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
    117. 117. 117 What is the Long Tail? • The Long Tail is: – A huge offer of single items – which are each of interest to specific small groups or niches, – but whose total market-potential is bigger than that of the market- leader! • Since ICT today is characterized by: – Cheap and fast processors – Cheap data-storage – High speed data-transmission – Hugh bandwidth • It is now possible to store, assemble and distribute huge inventories of transportation, lodging, ancillary services, etc. • Needs of any niche market can be satisfied
    118. 118. 118 Visitorvolume Examples of Purpose of Visits General City Trip Barcelona Architecture by Gaudi The Long Tail in Tourism Art, Culture and Food
    119. 119. 119 Distribution Models • Traditional Distribution Chain: Off-line – “Bricks and Mortar” • New Distribution Chain: On-Line (Cybermediaries) – “Clicks” • Emerging Distribution Chain: Multi-Channels – “Bricks and Clicks”
    120. 120. 120 Distribution Models Direct Off-Line Direct On-Line Indirect Off-Line Indirect On-Line
    121. 121. 121 Dynamics in the Travel Industry • All players have to add value • 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! TRENDS: • De-intermediation (Internet) • Globalization • Integration (Horizontal, Vertical, Diagonal) • Increased Scale of Operations • Home-based Travel Agents (like ‘Tupperware Ladies’) • Role of Social Media & User Generated Content (like Tripadvisor) So Rethinking of Business Processess
    122. 122. Chapter 6 Transit Regions and Tourist Flows
    123. 123. 123 Transit Regions & Tourist Flows Demand Supply Intermediaries Influences from outside Influences on outside Transit Regions & Tourist Flows S.I.
    124. 124. 124 Tourist Flows What happens when a road is redirected? • Seasonality • Intensity • Direction • Distance
    125. 125. Chapter 7 Supporting Institutions
    126. 126. 126 Supporting Institutions Demand Supply Intermediaries Influences from outside Influences on outside Transit Regions & Tourist Flows S.I. S.I.
    127. 127. 127 Supporting Institutions • United Nations: UNWTO • Universities: Research • Education & Training • Consumer Organizations • ..............
    128. 128. Chapter 8 External Environments
    129. 129. 129 External Environments Demand Supply Intermediaries Influences from outside Influences on outside Transit Regions & Tourist Flows S.I.
    130. 130. 130 External Environments • Political • Economic • Social • Technological • Environmental • Demographic Financial Crisis Climate Change
    131. 131. 131 Influence of Technology Trans Pacific Transport System: Range of Planes FIFTIES: 2 Stops: Nadi & Honolulu EIGHTIES: 1 Stop in Honolulu NOW: Non-stop Effects on Nadi and Honolulu? Effects on tourism between USA and Australia?
    132. 132. 132 Technology: Influence on Tourism System • Internet – Changed production of tourism products • Mass Customization • Dynamic Packaging – Changed distribution of tourism products – User Generated Content (Blogs, Facebook, You Tube, ..) • ICT: – Processing power of chips much increased – Data storage at extreme low costs – Date transmission with enormous speed and bandwidth – All this at still lower costs! – Everyone all the time on-line?
    133. 133. 133 The Tourism System Demand Supply Intermediaries Influences from outside Influences on outside Transit Regions & Tourist Flows S.I.
    134. 134. 134 About Magiel Venema • Lecturer (retired) at NHTV Breda University of Applied Sciences (Netherlands) • Tourism Education Consultant with P.U.M. (Dutch NGO) • Director of Edutour (www.edutour.eu) – Tourism Textbooks Author and Publisher – Training and Simulation Software for Tourism and Hospitality Education
    135. 135. 135 Acknowledgements • Unless otherwise specified, all illustrations are from the author’s archive; • Other illustrations are either Public Domain or used under a Creative Commons License; • More info: http://creativecommons.org.

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