This document serves as a comprehensive introduction to tourism, outlining key concepts such as the tourism system, tourist demands, and the roles of various stakeholders. It emphasizes the dynamic nature of tourism influenced by evolving consumer behavior and external factors. The presentation is structured to facilitate understanding for those new to the field and includes references to enrich the learning experience.

1. An Introduction to Tourism
Magiel Venema
Revised 2017 Edition
© 2017 Edutour BV

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
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
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
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
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
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
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
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
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. Chapter 1
Introduction
Tourism at first sight

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
What is behind all this and is that
all there is?
Tourists
Cruise Ship
Attractions &
Destinations
But there is much, much more …………………

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
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
Main Characteristics of Definition
1. Activities of People;
2. Displacement outside usual environment;
3. Purpose of the trip;
4. Duration.

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. Chapter 2
The Tourism System

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
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
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
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
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
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
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
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
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
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. Chapter 3
Tourism Demand

30. 30
Tourism Demand
Demand Supply
Intermediaries
Influences from outside
Influences on outside
Transit Regions &
Tourist Flows
S.I.
S.I.

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
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
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
2015 World’s Top 10 Tourism
Destinations
Source: Wikipedia

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
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
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
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
The Demand
• Quantitative Aspects
– How many?
– Where to?
– When?
– Ages?
– How often?
– From where?
– Type of Transportation?
– Type of Accommodation?
– Spending?
– Etc.

40. 40
Statistics
• Quantitative Aspects are found in statistics
– International Statistics (UNWTO)
– National Statistics
• Source for Planning and Marketing!

41. 41
The Demand
Qualitative Aspects
• Composition
• Typologies
• Norms and Values
• Life Style
• Behavior

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
Maslow’s Hierarchy of Needs

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
%ofPopulation
Psychocentric
Nearpsychocentric
Nearallocentric
Allocentric
More familiar destinations Exotic destinations
Midcentric
Plogs Typology of Tourists

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
%ofPopulation
Familiar destinations Exotic destinations
Dynamics: Once Exotic Destinations become Mass Destinations!
Plogs Typology of Tourists
Shift of Time

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
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
Change of a destination:
Acapulco (México)
From a tiny fishing village into this……..
There are many Acapulco’s in the world!

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
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
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
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. Chapter 4
Tourism Supply

56. 56
Tourism Supply
Demand Supply
Intermediaries
Influences from outside
Influences on outside
Transit Regions &
Tourist Flows
S.I.

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
Tourism Supply
• Tourism Product
– Broad Sense: Destination Features
– Narrow Sense: Tourism Industry/Services
at Destination

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
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
Components of Product
• Destination with attractions
• Facilities: Accommodation, Restaurants, ..
• Transport
• Infrastructure
• Hospitality

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
Natural Environment
• Climate
• Geology
• Beaches
• Caves
• Mountains
• Rivers, Lakes
• Glaciers
• Forests
• Flora & Fauna

64. 64
Man-made, not specific
• Archeology
• Churches
• Historic Buildings
• Ancient Ruins
• Historic Gardens
• Steam Railways
• Industrial Heritage
• Reservoirs

65. 65
Man-made, specific, purpose built
• Theme Park
• Amusement Park
• Casinos
• Resorts
• Heritage Centers
• Zoo’s, Safari Parks
• Craft Centres
• Marinas

66. 66
Culture, Customs & Folklore
• Traditional Costumes
• Markets
• Religion
• Health
• Culinary

67. 67
Special Events
• Sporting Events (Olympic Games, World
Soccer Cup)
• Cultural Events (Music Festivals)

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
Diversified Destination: Spain
• Sun, sea, sand
• Culture
• Old Cities
• Nature
City of Avila

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
Product = Experience
• Anticipation
• Journey to and from
• Visit itself
• Recollection:
A story to tell back
home!!

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
Product Levels
• Can you recognize the three levels of this
product?

74. 74
Numberoftourists
Time
Exploration
Involvement
Development
Stagnation
Decline
Continued
Stagnation
Rejuvenation
Consolidation
Destination Life Cycle
(R. Butler, 1980)

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
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
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
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
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
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
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
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
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
Impacts of Tourism
• Impacts can be either Positive or Negative
• Impacts of Tourism on Destination:
– Spatial
– Economical
– Cultural
– Environmental
– Political
– Social

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
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
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
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
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
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
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
Hospitality Model
Consumer Provider
Services
Money
•Needs
•Objectives
•Expectations
•Environment
•Behavior
•Product
•Concept

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
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. Chapter 5
Intermediaries

96. 96
Intermediaries
Demand Supply
Intermediaries
Influences from outside
Influences on outside
Transit Regions
& Tourist Flows
S.I.

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
Intermediaries
• Stimulators
– NTO's, Regional & Local Tourist Offices
• Producers
– Tour Operators / Wholesalers
• Distributors
– Travel Agencies
• Facilitators
– Touring Clubs, Banks, Educators

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
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
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
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
The Travel Industry
• Which players are there?
• How do they interrelate?

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
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
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
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
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
Travel Agencies
• Two Main Types:
– Leisure Travel Services
– Business Travel Services

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
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
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
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
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
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
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
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
Visitorvolume
Examples of Purpose of Visits
General City Trip Barcelona
Architecture by Gaudi
The Long Tail in Tourism
Art, Culture and Food

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
Distribution Models
Direct
Off-Line
Direct
On-Line
Indirect
Off-Line
Indirect
On-Line

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. Chapter 6
Transit Regions and Tourist Flows

123. 123
Transit Regions & Tourist Flows
Demand Supply
Intermediaries
Influences from outside
Influences on outside
Transit Regions
& Tourist Flows
S.I.

124. 124
Tourist Flows
What happens when a road is
redirected?
• Seasonality
• Intensity
• Direction
• Distance

125. Chapter 7
Supporting Institutions

126. 126
Supporting Institutions
Demand Supply
Intermediaries
Influences from outside
Influences on outside
Transit Regions &
Tourist Flows
S.I.
S.I.

127. 127
Supporting Institutions
• United Nations: UNWTO
• Universities: Research
• Education & Training
• Consumer Organizations
• ..............

128. Chapter 8
External Environments

129. 129
External Environments
Demand Supply
Intermediaries
Influences from outside
Influences on outside
Transit Regions
& Tourist Flows
S.I.

130. 130
External Environments
• Political
• Economic
• Social
• Technological
• Environmental
• Demographic
Financial Crisis
Climate Change

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
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
The Tourism System
Demand Supply
Intermediaries
Influences from outside
Influences on outside
Transit Regions &
Tourist Flows
S.I.

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
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.