Transcript Degree of Institutionalization and Impact on Destination

Chapter 18
Destination
Marketing
“Marketing should focus on market creation, not
market sharing”
- Regis McKenna
“To be wise, a man should read ten thousand
books and travel ten thousand miles.”
- Li Bai, Chinese poet, Tang Dynasty
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
Chapter Objectives
• Discuss the benefits of tourism
• Explain tourism strategies and different
options for creating and investing in
tourism attractions
• Understand how to segment and
identify visitor segments
• Explain how central tourist agencies are
organized
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
Tourism
• Tourism is a stay of one or more nights away
from home for holidays, visitors to friends or
relatives, business conferences or any other
purpose except such things as boarding
education or semi-permanent employment
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
The Globalization of the
Tourist Industry
• Travel is a global business with an
expanding market
• The top ten destinations in the world
accounted for less than half the total
tourism market in 2002
• Can you list three of the top ten
destinations in the world?
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
The Tourism Destination
• Destinations are places with some form of
actual or perceived boundary
– Physical boundaries
– Political boundaries
– Market-created boundaries
• Macrodestinations - the United States
contains thousands of microdestinations,
including regions, states, cities, towns, and
even visitor destinations within a town
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
Benefits of Tourism
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Direct employment
Support industries and professions
Multiplier effect
Source of state and local taxes
Stimulates exports of place-made
products
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
Management of Tourist
Destination
• Destinations that fail to maintain the
necessary infrastructure or build
inappropriate infrastructure run significant
risks
• Violence, political instability, natural
catastrophe, adverse environmental factors,
and overcrowding can all diminish the
attractiveness of a destination
• What was the effect of 9/11 on US Tourism?
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
Sustainable Tourism
• Sustainable tourism is a concept of
tourism management that anticipates
and prevents problems that occur when
carrying capacity is exceeded at the
destination
• Environmental Impact Assessment
(EIA)
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
Steps in Environmental Impact
Assessment (EIA)
• Inventory the social, political, physical,
and economic environment
• Project trends
• Set goals and objectives
• Examine alternatives to reach goals
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
Steps in Environmental Impact
Assessment (EIA)
• Select preferred alternatives
• Develop implementation strategy
• Implement
• Evaluate
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
Sustainable Tourism
• Modified environments – Building ecotourism subsets that encourage wildlife
• Successful long-run tourism destinations
require cooperation between industry and
community
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
Tourist Events
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Attract a desired market
Fit within the community’s culture
Should be replicable (annual/biannual)
Allow/encourage local resident
participation
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
Attractions
• Natural
– Niagara Falls or The Scottish Highlands
• Man-made
– The Shopping Areas of Buckingham
Palace, Hong Kong or the Vatican
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
Stopover Tourism
• Many visitor destinations are in fact only
stopover destinations for travelers on
their way elsewhere
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
Determinates of Demand
Prestige
Selfdiscovery
Relaxation
Family
Bonding
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Escape
Demand
Sexual
Opportunity
Education
Social
Interaction
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
Identifying Target Markets
• Collect information about its current
visitors
• Audit the destination’s events and
attractions and select segments that
might logically have an interest in them
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
Self-Contained Attraction
and Event Destinations
• Cruise ships, river paddle ships, special
railroads such as the Orient Express
– Dining, games, gambling, theatre,
musicals, participatory murder mysteries,
seminars, dances, etc.
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
Classification of Visitor
Segments
• Group or Independent traveler
• Degree of institutionalization and impact
on the destination
• Plog’s categorization
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
Group vs. Independent
• Most commonly used
– Group Inclusive Tour (GIT)
– Independent Traveler (IT)
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
Degree of Institutionalization
and Impact on Destination
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Organized mass tourists
Individual mass tourists
Explorers
Drifters
Visiting friends/relatives
Business travelers
Pleasure travel
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
Degree of Institutionalization
and Impact on Destination
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Business and pleasure travelers
Tag-along visitors
Grief travel
Education and religious travel
Pass-through tourists
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
Plog’s Categorization
• Allocentrics are persons with a need
for new experiences, such as
backpackers and explorers
• Psychocentrics are persons who do
not desire change when they travel.
They like non-threatening places and to
stay in familiar surroundings
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
Communicating with the
Tourist Market
• Form an attractive image of destination
• Develop packages of attractions and
amenities
– Attractions alone do not attract visitors
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
Organizing and Managing
Tourism Marketing
• National tourist organizations (NTOs) are
central tourist agencies that make a destination
tourist friendly
– may be public, quasi-public, nonprofit, or
private
– outside the United States, this agency is often
run by the central government, state, or
province, together with local government
officials
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
Influencing Site Selection
• All tourism businesses and agencies
must work together to promote a
destination and to ensure that visitors’
expectations are met
– Fam trips, sales calls, travel missions, etc
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens