A2 Unit 3 Travel & Tourism Mr. F

Risk averse

Risk averse

Disinclined or reluctant to take risks

Risk Tolerant

Willing to take risks

Brand Identity

The way in which a destination, the branding tourism authorities want to be perceived by consumers.

Tourist Receiving Countries

Countries that attract the highest number of international visitors. They usually have good tourism infrastructure.

Demand

A consumers desire to purchase products and their willingness to pay a price for these products/services.

Organized Mass Tourist

The least adventurous type of tourist, uses a lot of excursions/guided tours and books in advance.

Individual Mass Tourist

This tourist is similar to the organized mass tourist, however the tour is not entirely fixed, they use tours from the tour agency but still have a certain amount of control over the time and itinerary and aren’t fixed to a group. However major arrangements are still made by the agency.

Explorer

These tourists arrange their trips themselves. They try to mix with the population and try to go somewhere unusual but still retain some basic routines and comforts to be careful about what they experience.

Drifter

This person makes trips on their own. They avoid tour operators and hotels. They try to live exactly like locals in foreign countries.

Exploration stage in Butler Destination Life Cycle

Tourism is limited. Not many airlines make trips to these locations, prices can be high, there are not many tour operators that will do excursions so the tourists would have to plan the trip themselves.

Involvement stage in Butler Destination Life Cycle

There is slightly more tourism than the exploration stage, locals will cater for visitors and there is some promotional tourism activities, the destination starts to grow.

Development stage in Butler Destination Life Cycle

This destination is well established in a defined market. There are a lot of businesses that try to set up in these locations as there is profit making incentives.

Consolidation stage in Butler Destination Life Cycle

This is where a country relies on tourism. Land is used purposefully for tourism activities. Employment in tourism hotspots rise and other industries fall. The rate of tourism growth slows down, even though there are more consumers.

Stagnation stage in Butler Destination Life Cycle

This is where the destination reaches its peak no. of tourists. There are so many tourists, the thought of going to this destination for some tourists will decline, and therefore the appeal for natural or cultural reasons are lost. Therefore, profits for businesses fall.

Qualitative Research

Data gathering techniques are focused on ideas, opinions and judgements. Evidence is gathered through focus groups, interviews and observations.

Quantitative Research

A formal, objective, systematic process in which numerical data are used to obtain information, that can be numerically presented.

Advantages of Qualitative Research

• Provides depth/detail by recording attitudes feelings and behaviors

• Creates openness by encouraging people to expand on their responses. This can highlight areas that were originally identified as a research objective.

Disadvantages of Qualitative Research

• Usually fewer ppl are surveyed, collection is more time consuming than quantitative data collection and unless staff and budget allows, it is typically necessary to survey a much smaller sample.

Advantages of Quantitative Research

• Easy to present results in graphs, tables and charts, which makes interpretation and analysis more straightforward.

• Personal bias is more easily avoided as researchers do not have to associate too closely w/ respondents.

Disadvantages of Quantitative Research

• Results are more limited as they provide numerical descriptions rather than detailed narrative

• Generally collects narrower and more “superficial” set of data

Psychographic Segmentation

Psychographic Segmentation is a marketing strategy that categorizes consumers based on their lifestyle characteristics, such as values, beliefs, interests, and lifestyles. It helps businesses understand their target audience on a deeper level, enabling them to tailor their products and messages to specific consumer segments.

Geographic Segmentation

Targets customers based on where they live. For example, this type of domestic market will find ways to attract locals into doing diff tourist based activities.

Demographic Segmentation

This is data relating to customer’s age, gender, ethnicity or level of disposable income and is used to segment customers. ex: some destinations try to target customers by age as a means of overcoming seasonality.

Segmentation by travel motivation

The reason for making a trip, they can be classified as business tourists, leisure travellers etc.

Augmented Product

The core product that has been enhanced by its seller by adding features or services to distinguish it from the same product being offered by competitors. ex: leisure facilities in a gym hotel, sauna, fine dining etc

Core Product

The primary product or service that can be purchased by a customer. In the example of a hotel this is the room they book to stay in.

Factors Influencing Price

• Market Research Findings

• Level of competition

• USP

• Quality of product/service demand

• Cost of Production

Market Skimming

• High price at the beginning, the more customers experience the product, the price gradually goes down.

• This is usually used in an emerging destination, the customers that try out these products are known as innovators.

Penetration Pricing

• Low price at the beginning, as interest is generated and more customers experience the product, price goes up

Promotional Pricing

This is where there are special offers such as buy one g1 free, money off coupons. This is where sales are low for a destination and they are trying to increase sales by offering diff promotional packages.

Prestige Pricing

This is known as premium pricing, the product is at a high quality so the price is much higher.

• Places such as the Maldives, Caribbean

Variable Pricing

Also known as price discrimination, examples include children under age of 2 get fee movie seats, your age depending on cost of your holiday etc.

Reasons for Branding A Destination

• To change perceptions

• To create a common vision

• To provide a consistent representation

• To enhance awareness and increase appeal

Destination Marketing Organization

A company that promotes a location as an attractive travel destination. DMO’s are often known as tourist boards, tourism authorities or visitor bureus.

Market Share

The term given to the proportion of the market controlled by a particular product, company or in this context of tourism destination.

Change and Devlopment

A SWOT analysis allows a destination to review the internal and external influences on its operating environment, which are always subject to change. Where opportunities are found, tourism providers will seek to develop new products/services to advance tourism development.

Full Situation Analysis

A thorough examination of the internal and external factors that are likely to impact on the marketing environment for a business or a destination. A full situation analysis usually involves carrying out a SWOT and PESTLE analysis to identify obstacles to marketing.

Rejuvenation stage in Butler Life Cycle

-New attractions included. The significance of this is that the local community will benefit through job creation, businesses will benefit through more sales and the community will improve their living standards.

Local and national support needed for ex govt can give grants, advice, finance the advertising for tour operators on planes, billboards etc.

-Adopting a new approach to appeal to a new target market

Marketing and Management

Market research is an important stage in both the marketing and management of the destination. Marketing is the process of identifying the needs of customers and offering appealing products/services that meet those needs. National, regional and local tourism organizations carry out market research as part of their destination marketing process.

Primary Research Advantages

• Data is relevant and specific to the exact needs of the organization.

• More accurate and reliable than secondary data

Primary Research Disadvantages

• Expensive as the organization has to be involved and finance throughout

• Time consuming

Secondary Research Advantages

Ease of access due to much information being readily available on internet

Much of the data is free of charge

Possible outcomes following stagnation in Butler Cycle

• Rejuvenation

• Decline

• Rapid Decline

• Reduced Growth

• Stabilization

Negative political situations that affect a destination (PESTEL)

• Acts of terrorism

• Civil unrest

• Military coups

Positive political situations that affect a destination (PESTEL)

• High levels of govt support within a destination

• Army protection

Negative economic situations that affect a destination (PESTEL)

• Increased taxation

• Increased Interest Rates

Positive economic situations that affect a destination (PESTEL)

• Govt subsidies for local businesses

Negative social situations that affect a destination (PESTEL)

• Population sizes are increasing

• Culture clashes might leave visitors feeling unwelcome

Positive social situations that affect a destination (PESTEL)

• Culture might be encouraging for tourists to visit the destination

Positive technological situations that affect a destination (PESTEL)

• Customer reviews online

• Marketing through social media

• 24 hour access to customers of promotional activities through websites and apps which benefits as customers have diff working hours.

Negative technological situations that affect a destination (PESTEL)

• Some areas are struggling to keep up with the technological demand and not all countries have the resources to be quick enough and react to these changes.

Legal situations that affect a destination (PESTEL)

• Visa Requirements

• Visitor permits

• Quarantine and testing requirements for COVID

• Vaccination certificates

Environmental situations that affect a destination

• Overcrowding

• Habitat destruction

• Littering

• Pollution

Global and Growing

The external business environment in which all destinations operate may be seen as one global market, which is affected by changes in political and economic circumstances. A PESTLE analysis allows a destination the opportunity to determine the extent to which global tourism growth may benefit tourism in that country.

Customer Profile

This is created when an organization uses the analysis of market segmentation to build understanding of the target market, based on characteristics of a ‘typical’ customer eg who is most likely to be a potential visitor to the destination.

Market Demand

The total quantity demanded across all consumers in a market for a given product/service.

Accommodation Stock

• The total number of available tourist accommodation within a destination, across all of the different types of accommodation- hotels, guest house etc.