Marketing for Tourism and Hospitality

1. Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
1
Chapter 18
Destination Marketing
The Globalization of the Tourist
Industry
• 625 million tourists traveled internationally in 1998
• These tourists spent over $444 billion
• Tourism accounts for 8% of total world exports
• Tourism employs more people than any single industrial sector
• Tourism has infrastructure (lodging, transportation, and restaurants)
investment estimated to exceed $3 trillion.

2. Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
2
The Tourism Destination
• Destinations are places with
some form of actual or
perceived boundary
– such as the physical
boundary of an island
– political boundaries
• Macro destinations such as the
United States contain
thousands of micro
destinations
– including regions
– states
– cities
– towns

3. Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
3
Benefits of Tourism
• Direct employment in hotels, restaurants,
retail establishments, and transportation
• Support industries and professions
• Multiplier effect as tourist expenditures are
recycled through the local economy
• Tourism helps shift the tax burden to
nonresidents

4. Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
4
Management of the Tourist Destination
• Destinations that fail to maintain the necessary
infrastructure or build inappropriate infrastructure
run significant risks
• A destination’s attractiveness can be diminished
by
– violence
– political instability
– natural catastrophe
– adverse environmental factors
– overcrowding

5. Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
5
Sustainable Tourism
Sustainable tourism is a concept of tourism management
that anticipates and prevents problems
that occur when carrying capacity is exceeded

6. Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
6
Environmental Impact Assessment (EIA)
• Inventory the social, political, physical, and
economic environments
• Project trends
• Set goals and objectives
• Examine alternatives to reach goals
• Select preferred alternatives
• Develop implementation strategy
• Implement
• Evaluate

7. Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
7
Tourism Strategies and Investments
Fierce Competition
• Rediscovery of a destination’s past
• Shorter vacations, or long weekends
Investment in Tourist Attractions: Tourism
investment ranges from relatively low cost
market entry for festivals or events, to
multimillion-dollar infrastructure costs of
stadiums, transit systems, airports, and
convention centers.
• Destinations must respond to travel basics of
cost, convenience, and timeliness.

8. Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
8
Psychological Determinants of Demand
Self-
discovery
Relaxation
Family
Bonding
Social
Interaction
Education
Sexual
Opportunity
Escape
Prestige
Demand

9. Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
9
Identifying Target Markets
• Collect information about current visitors
• Audit the destination’s attractions and
select segments
• Conduct research to determine where
these tourists are found

10. Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
10
Classification of Visitor Segments
Roles and Status Group
inclusive tour (GIT)
Roles and Status
Independent traveler (IT)
Individual mass tourists Explorers
Drifters
Allocentrics
Psychocentrics

11. Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
11
Figure 18-1
Plog’s
categorization
of destinations
Source:Plog, “Why
destinations rise and
fall in popularity,”
Cornell Hotel and
Restaurant
Administration
Quarterly, 14(4),
p.58 copyright 1974
by Cornell
University.

12. Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc.
Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458
12
Communicating with the Tourist
Market
• Image Making
• Developing packages of attractions and
amenities
• National Tourist Organizations (NTAS)
• Outside the United States, this agency is
often run by the central government, state, or
province, together with local government
officials.