Transcript What is a Tourism Product?

Specialised & Cause Related
Marketing (SCM812S)
UNIT4
TOURISM MARKETING – AN OVERVIEW
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Unit Objectives
Upon completion of this unit you will be able to:
 define the concept tourism and tourism marketing
 discuss of the nature and scope of tourism marketing
 list and outline the main players in the Namibian
tourism industry
 apply the marketing mix to the tourism industry
 identify and list the tourism workers and categories of
customers in Namibia
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Introduction
Every tourism organisation, whether conscious of it or not, conducts marketing
activities. A local guesthouse owner, for example, has to make decisions about which
services to offer and how to promote the guesthouse. Tourism is deemed to include any
activity concerned with the temporary short-term movement of people to destinations
outside the places where they normally live and work, and their activities during the
stay at these destinations.
Whether it is a city, a vacation resort, a theme park, a special event, a transportation
provider, or any other business or organisation that relies on tourists for profitability,
each one requires a product-specific marketing strategy if it is to beat the competition
and win the business of tourists. Tourism marketing is a very important functional area
in a tourism business organisation. Tourism marketing is the application of marketing
concepts in the travel and tourism industry. Tourism marketing could be complex due to
the product being an amalgam of many different industries such as accommodation
and transportation. The markets also vary widely, and determining the consumers´
preferences could be difficult.
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What is Tourism Marketing?
Tourism marketing refers to the organised, combined efforts of the
national tourist bodies and/or the businesses in the tourism sector
of an international, national or local area to achieve growth in
tourism by maximising the satisfaction of tourists. In doing so, the
tourist bodies and businesses expect to receive profits.
Tourism marketing can be defined as the effective promotional
strategies used by tourist destinations to attract visitors. Richard
George (2004, p. 23) defines tourism marketing as the process
through which a tourism organisation first anticipate consumer
needs, then manages and satisfies those needs to achieve sales.
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Nature and scope
No matter which definition of tourism marketing one prefers or
uses, the scope of tourism marketing is unquestionably broad
(George, 2004, p. 23). Tourism marketing involves finding out what
tourist want (marketing research), developing suitable offerings
(product development), telling them what is available (promotion
and communication), and providing instructions where they can
buy the offering (place), so they in turn receive value (pricing), and
the tourism organisation makes money.
Also included are diverse subject areas as: product planning and
product management, pricing, branding, distribution channels,
personal selling and sales management, advertising, promotions
and marketing communication, packaging, display, servicing,
physical handling, and fact finding (research) and analysis. Areas of
consumer behaviour, purchasing, sales management. These can be
grouped in what is termed the marketing mix of tourism.
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Types/Forms of Tourism
The travel and tourism industry comprise of:
 International visitors who are residents of countries other than
that being visited and travel for tourism purposes. Also known
as inbound tourism (simply speaking, inbound tourism is when a
non-resident or foreigner visits a given country)
 International visitors, who are residents of a country visiting
other countries and travel for tourism purposes. Also known as
outbound tourism (simply speaking when a resident of a given
country leaves that country to visit another one)
 Residents visiting destinations within their own country’s
boundaries who travel for tourism purposes. Also known as
domestic tourism.
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Major players/Sectors of the tourism
industry in Namibia
1. Government/Public Sector
The Namibian tourism industry is made up of the public sector
players as well as private sector players. At the helm of the
industry is the Ministry of Environment and Tourism which is
responsible for the management and regulation of the tourism
industry. Other public sector players in the industry are Namibia
Tourism Board (NTB), which is responsible for marketing and
regulating of the industry, Namibia Wildlife Resorts, which is
responsible for Government parks and reserves and Air
Namibia, which is the national carrier.
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CONT’D…
2.0 Private Sector
On the private sector side, many organisations exist which are
members of the Federation of Namibian Tourism Association
(FENATA), which is an organisation that operates as a voluntary
association with objectives that includes lobbying government and
acting as the voice of the tourism industry. Its members includes
Association of Namibian Travel Agents (ANTA), Bed and Breakfast
Association (BrandBA) also known as Accommodation Association
of Namibia (AAN), Car Rental Association of Namibian (CARAN),
Emerging Tourism Enterprises Association (ETEA), Namibian
Association of Community (NACSO), First National Bank Namibia,
Namibian Association of Community Based Natural Resources
Management Support Organisation (NACOBTA), Namibian
Association of Protected Desert Areas (NPDA), Namibian
Protection Hunters Association (NAPHA), Namibian Academy for
Tourism and Hospitality, Namibia Wildlife Resorts, Tour Guides
Association of Namibia (TAN), Tour and Safari Association (TASA),
Hospitality Association of Namibia (HAN).
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Cont’d…
2.1. Transportation Sector: this sector includes airlines,
railway services, coach and bus services and car rental
companies. These services need to be in place for
tourists to connect to their destinations swiftly and
conveniently.
2.2 . Accommodation Sector: accommodation should
be highly accessible and meet the criteria as set out by
the Namibia Tourism Board. Included in this sector are:
hotels, pensions, guest houses, bed & breakfast
establishments, lodges, resorts, rest camps, temporary
and as well as permanent tented camps.
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Cont’d…
2.3. Tour Operators and travel agencies: tour operators and
travel agencies alike should provide the services needed by
clients, both at the destination and in their home countries,
when enquiring about a specific tour. E.g.. Trip travel, world
travel, safari tours etc.
2.4 Tourism Destination marketing Sector: it is a new area of
the tourism industry that enjoys fast growth, for instance
established companies specialise in marketing specific world
destinations such as the Disneyworld, the Caribbean, African
sites and reserves such as Etosha National Park, Victoria Falls
and other world heritage parks.
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Further supporting sectors of the
tourism industry are formed by
The Telecommunication sector: Telecom, TN Mobile,
MTC
Financial sector: Foreign Exchange Bureaus (Thomas
Cook, American Express, Western union), and the
commercial banks
Education Sector: training is provided to those who
want to enter the tourism industry: Polytechnic, Unam,
Nice etc.
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Importance of tourism marketing to
the Namibian economy
Tourism is the third biggest economic sector in Namibia and as such,
is a key driver in achieving the country’s growth objectives set out in
the Namibia Development Plan (NDP4) (GRN, 2012). The direct
impact of the industry on GDP is estimated to be about 4 per cent,
while direct and indirect contribution is registered around 15.5 per
cent. Employment opportunities (direct and indirect) account for
about 80,000 jobs (Who’s Who Namibia, 2013).
Furthermore, the Namibian tourism industry is one of the important
foreign exchange earners in the country. Wildlife conservancies, one
of the fastest-growing areas of economic development, are
particularly important to the rural, generally unemployed, population.
They do not just provide employment to the rural people, but also a
means of income.
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Major Characteristics of the Tourism
Industry
1. Inflexibility: the tourism industry is highly inflexible
in terms of capacity. The number of beds in a hotel
or seats on an airplane is fixed so it is not possible to
meet sudden increase in demand. Similarly,
restaurant tables, hotel beds and airplane seats
remain empty and unused in periods of low demand.
2. Fixed Location: the attractions/destinations of the
country such as the Etosha National Park, Sossusvlei,
Fish River Canyon etc. are fixed locations. These
cannot be brought to the visitor, but the visitor has
to go where they are located.
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Cont’d…
3.Relatively large capital investment: every modern tourism
establishment requires large investment, frequently over a
long time scale. Many risks are involved including economic,
political, socio-cultural etc.
4. Long Lead time: this means that the efforts put into
tourism marketing i.e. informing potential tourist of Namibia,
will only show results in the future.
5. High sensitivity to the Political environment and general
safety:
political instability and general safety strongly affect the
tourism industry. For example, Namibia’s tourism industry
has to fight the negative publicity in overseas’ media about
tourists being murdered.
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Applying the marketing mix to
tourism marketing
Source: Mindtool.com (2014)
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Cont’d…
In service marketing – such is the case of tourism
marketing, the four P’s have been expanded to seven
P’s to address the different nature of services. The
additional three P’s in tourism are people, process and
physical evidence. The seven P’s are outlined below:
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Product
What is a Tourism Product?
When thinking about a tourism product, it’s important
to differentiate between what the customers actually
buy (the promise of a product) and the product – mainly
a service – that they receive after the purchase (the
actual product) (George, 2004, p. 26). The purchasing
decision made by the tourist is based on the promise of
the product – a promise established by what she or he
sees in your promotional material.
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Cont’d…
This is because the tourism product – unlike a car or a
computer – consists of a combination of tangible and
intangible items the potential customers “buys” before
“acquiring” the product. The tourism product includes all
the experiences of a tourist from when he leaves his home
to when he returns. An area´s natural attractions, including
climate, history and culture, can be seen as the raw
materials of the tourism product. Other aspects that can
help achieve tourist satisfaction include amenities such as
water, electricity, transport and communication. The tourism
product is the sum of all the factors in an area that can result
in consumer satisfaction. A tourist or his travel agent
combines the different components to get his own tourist
product.
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Cont’d…
For example, the product “Popa Falls Lodge” –– is the
combination of tangible goods (e.g. the rooms, the
swimming pool, the birds) and intangible experiences
(e.g. the service, the activities). Obviously, the product
is thousands of miles away and you are not buying the
property, therefore the actual product you buy is the
promise displayed on the brochure (while the brochure
is a promotional channel).
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Examples of Tourism Products in
Namibia
Tourism products in Namibia can be grouped as follows:
 Accommodation/Hospitality: such as hotels, lodges, bread
and breakfast, pension; restaurants
Destination: natural scenes, historic excellence, artificial
beauties, social cultural excellence;
Transportation: comprising Infrastructural ( airports,
railways, roadways, waterways), and local etc.;
Tour operators: travel companies, travel agents, guides;
and
Shopping: handicrafts, malls, etc.
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Reflection
If you had a tourist facility in the south of Namibia. What
different tourist offerings would you provide for both
domestic and international tourists and why?
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Promotion
Promotion is the activity of telling your market about your
product (George, 2004, p. 29). In the example of the Popa
Falls lodge, you are using a brochure to tell your customers
about a tourism product in the Popa Falls area of Divundu.
Marketing communications occur in three ways: external,
internal and word-of-mouth.
External marketing uses formal communication channels to
promote the tourism product to the traveller, boasting of its
benefits and making promises. Internal marketing
communication occurs when the tourism service provider
makes contact with the tourist and delivers the promised
benefits. Word-of-mouth communication occurs informally
when visitors or employees discuss their experiences of the
tourism product to others.
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Cont’d
The promotion mix includes advertising, publicity, sales support and public relations.
The purpose of promotion is to make available the information to the user. Advertising
and the sales promotion can be effective when supplemented by publicity and personal
selling.
Radio, TV, newspapers, cinema and printings are some of the important vehicles for
traveling of messages. Another important component of the promotion mix is public
relation. It helps in projecting the image of an organisation. Public relation and publicity
include regular articles and photographs of tour attraction, use of TV and travel
journalists to promote editorial comment.
Public relation officer plays an important role. S/he should be efficient, active,
impressive, intelligent and well-behaved. Good image projection can be made if the PRO
manages the affair like a professional. It is said that word of mouth is the best form of
publicity. The word of mouth promotion is an important tool in tourism marketing. With
more people than ever relying on the Internet for information, and particularly if the
attraction wishes to target a younger, more technologically savvy crowd.
Web-based advertising is important. Apart from an attraction or destination building its
own website and driving traffic to it, attractions should also explore social networking
opportunities.
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Placement
Placement is synonymous with distribution. It refers to providing the
product at a place, which is convenient for consumers to access. In
tourism, the product is not distributed to the client, but the clients
travel to the product.
Thus, unlike physical products, tourism distribution is more related to
where you distribute the information about the service (trade shows,
resellers, webpages, etc.). In the example of the brochure of the Popa
Falls Lodge, the placement may be your office, a trade show in London,
Germany or Windhoek or to potential customer´s houses (by direct
mailing). The tourist centres should be located at suitable points.
If the tourist spots are natural (such as Etosha National park) there is
no question of selection. Infrastructural facilities, transport and
communication are important for development of tourist centres. The
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Cont’d…
site selected should have natural surroundings,
increased accessibility and improved amenities. At the
same time it is also important that the ecological
balance is not disturbed.
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Price
Price is what the business charges for its tourism product as defined by the
interacting forces of supply and demand (George, 2004). Pricing of the
tourist product is complex. Geographical location of the destination,
seasonality and varying demand affects the pricing decision.
At a practical level, tourism enterprises can determine their prices by
analysing: the cost of running the business; the willingness to pay by the
demand; the prices of the competition; the commission to be provided to
resellers. In tourism, two prices are often used: rack rates, which are the
prices published in promotional materials – without discounts, and net
prices (or net rates), which is the rack rate less the commission offered to
resellers (tour operators or other intermediaries).
The different pricing methods generally used are cost based pricing,
demand based pricing and competition based pricing. It may also be
advantageous to differentiate rates for low income group people,
students, seniors (retired persons), children, off-season, etc. When a
tourist proposes to visit a particular place, the total costs of his traveling
also include the expenses incurred on transportation, accommodation and
communication.
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Activity
For the same tourist facility in the south of Namibia,
how will you go about determining the prices of your
tourist offerings.
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People
Any person coming into contact with customers can
have an impact on overall satisfaction. In tourism,
people are particularly important because, in the
customer’s eyes, they are generally inseparable from
total service. In tourism, the human component is very
important, so the attitude, skills and appearance of all
people involved in the traveller’s experience needs to
be first class. Some ways in which people add value to
an experience, as part of the marketing mix, are training
and service.
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Process
If tourism business offers services, the processes of the
business can offer specific advantages. Processes should
do more than just make life easier for the business – they
must help customers get what they want. For instance, for
booking a flight on the internet the process begins with
the customer visiting an airline’s website. The customer
enters details of the flights and books them. The
customer’s ticket/booking references arrive by email. The
customer catches his flight on time and he arrives
refreshed at his destination. The coming together of all
the mentioned stages constitutes a marketing process.
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Physical evidence
Physical evidence makes the customers perceive how the
services would be like. Unlike a physical product, a service
cannot be experienced before it is delivered, which makes it
intangible. This, therefore, means that potential customers
could perceive greater risk when deciding whether or not to
use a service. To reduce the feeling of risk, thus improving
the chance for success, it is vital for potential customers to
see what a product would be like. This is done by providing
physical evidence – displayed in photographs (of your
facilities, i.e. image gallery on the web home page, etc.) or
testimonials (what tourists write about their own previous
experience).
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Class Activity
 Select a Namibian tourism product and show how you
would apply the marketing mix to market your
tourism offer. What elements will you look at?
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Cont’d…
The main employers in the tourist sector in Namibia are
tours operators, accommodation establishments such
as lodges and hotels, parks and reserves, hunting farms,
taxidermists, vehicle rentals and camping equipment
hire companies, curio and souvenir shops. These employ
the following different types of workers: porters, cooks,
cleaners, gardeners, drivers, security guards, cruise ship
workers, guides, secretaries, accountants, land-ladies,
hotel managers, waiters, marketers, chefs and
bartenders.
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Who is a tourism customer?
A tourism customer can be defined as a person, who
makes a tour away from home for leisure, business or
other purposes for more than one day but less than a
year. Based on their various needs and reasons for
traveling, tourists can be classified in the following
categories according to Hotel Resorts Insider (HRI,
2007):
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Classification of Tourists/Types of
Tourists
1. Incentive tourists
Incentives tourists are those few lucky individuals, who
get a holiday package as a reward from his company,
for good work or achieving targets, set by the company.
Incentive tourists draw inspiration from such tours to
work harder, improve work relations and focus on team
bonding. A salesman who is awarded with a nice holiday
package for accomplishing the target sales is a perfect
example of incentive tourist.
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2. Health or medical tourists
Those who seek special medical treatment, which is only
possible away from home, make trips to other places and are
called health or medical tourist. Some of these tourists avail
medical assistance in other countries, for they may be
expensive in their own country. Many health or medical
tourists also make trips simply to stay for few days in
healthier climate. Hoards of medical tourist fly to Namibia
from oversee countries to undergo certain medical treatment
or just to recuperate.
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Cont’d…
3. Business tourists: Tourist traveling with relation to
business is known as business tourist. Business tourism
is part of the business world. Most of the cities feature
conference centres that cater to the needs of business
tourists. A proper example of a business tourist is a
salesperson, who makes trips to different places to
attend trade shows, to display and promote his own
products also.
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4. Education tourists
Tourists traveling to a particular place in another town, city or
country for further study in order to improve his or her
educational qualification are termed as education tourist. There
are also groups of people, who travel to attend workshops to
upgrade skills. A clinic nurse, who makes trip to another province
to attend a particular workshop, qualifying individual about
infectious diseases is an example of an educational tourist.
5. Adventure tourists
Adventure tourists look for some unusual or bizarre experience.
They seek adventurous activities that may be dangerous, such as
rock climbing, river rafting, skydiving, shark cave diving and
bungee jumping.
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6. Cultural tourists
These types of tourists travel to experience the essence
of assorted cultures, such as San rock art, or cultural
festivals such as the Bank Windhoek Art Festival or the
Ae/Gams in Windhoek, or the City of Windhoek Jazz
Festival. Cultural tourists also prefer to witness the
World Heritage Sites of the travelled country.
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7. Eco-tourists
Nature loving tourists, who love to go green like traveling to
Botanical Gardens in Windhoek, skeleton coast or similar
destinations are called eco-tourists. They travel throughout
the world in search of destinations not affected by pollution
or much human intervention.
8. Leisure tourists
These tourists want to rejuvenate and revitalize with
comfort, while enjoying a break from mundane routine of
life. Examples of this type of tourism are cruising while
vacationing or simple relaxing on a beach.
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9. Religious tourist
Religious tourist travel to sites of religious significance. The
world is dotted with a number of religious locations like,
Jerusalem in Israel, Varanasi in India, and the Vatican in
Rome. A huge conglomeration of Christian pilgrimage takes
place in Zion City.
10. Sport and recreation tourists
These sorts of tourists either take active part in or just watch
sports events. Some of such popular sport events are the
Soccer World Cup, Wimbledon Tennis Championship,
Comrades Marathon, and Fisher River Canoe Marathon.
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11. Backpacking or youth tourists
This group of tourist is of young age and they travel with
minimum luggage and on a limited budget. But they are very
passionate and love excitements and adventures, while
traveling. They generally have no specific travel schedules
and tend to travel independently.
12. Special interest tourists (SIT)
They nurture particular passion in different things like bird
watching, nature, fishing during a particular fishing events,
food and wine or attending the Cape Town Book Fair.
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Class Activity
Do a mini survey at Air Namibia offices in Windhoek or
visit a Hotel establishment to determine the
percentages of the different types of tourists visiting
Windhoek for that period. Use a sample of 25 travellers.
Let’s discuss your findings next class.
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END OF UNIT 4
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