Destination Management
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1 Destination Management Lecture 2 University of Applied Sciences Stralsund Leisure and Tourism Management WS 2006/2007 Slide Nr. 1
2 Summary of the last lecture Attractions in general - encourage visitors to region, no tourism without ~, Attractions defined - a designated permanent resource Typology of attractions - natural, man made, special events Terms and interrelations - attractions and destinations, Classification of attractions - catchment area, size, ownership, Slide Nr. 2
3 still Part One Sets the context by defining attractions, looking at their role in tourism, examining the attraction product and market, and outlining the business environment of attractions Slide Nr. 3
4 The Role of Attractions in Tourism Slide Nr. 4
5 Reasons for growth in visitor attractions Increased disposable income; More leisure time; Advances in transport; Education; Media images; Increased marketing. Part One \ The role... Slide Nr. 5
6 What are some of the trends effecting attractions? Ageing population; Desire for an educational experience; Cultural and historic preservation; Other Trends: - Changing technology (miniaturisation, computer effects); - Now Generation (instant gratification); - Disposable society; - Changing sociographics (changing traditional family structures.) Part One \ The role... Slide Nr. 6
7 History of attractions Most initially used for other purposes; Religious shrines motivated travel during medieval times; Growing cultural interest during the Renaissance; Grand Tour in 18th & 19th Century; 20th Century saw the beginning of created attractions and events. Part One \ The role... \ History of attractions Slide Nr. 7
8 Swarbrooke's development of destinations Single attraction; Embryonic destination: - Services develop around the single attraction; Developed single market destination: - Other attractions, designed for same market; Diversified destination: - Other attractions, designed designed for new markets. Part One \ The role... \ Attractions and other sectors of tourism Slide Nr. 8
9 Transport Transport networks make attractions physically accessible Road links are by far the most important type Attractions often lead to the development of new public transportation services Good on-site transport networks encourage visitors to use as many attractions as possible Innovative on-site transport modes are often recognized as an attraction in their own right Part One \ The role... \ Attractions and other sectors of tourism Slide Nr. 9
10 Tour operation Attractions are vitally important for packaging holidays Excursions, taken away from the base destination, are a valuable source of income for tour operators; - a number of attraction within a short range desirable - attractions should be different from the main attraction - off-peak season depends on availability of sufficient attr. Dynamic Packaging?! - driving forces: low cost carriers, broadband internet - new travel agents like expedia and lastminute Part One \ The role... \ Attractions and other sectors of tourism Slide Nr. 10
11 Economic impact of attractions Positive - provide government with income by: - taxes paid by employees - VAT paid on bought items - direct income from governmental owned attractions - provide directly and indirectly jobs - foreign currency from overseas visitors (major attractions) Negative - Jobs are often poorly paid - Many local authority owned attractions lose money! - Opportunity costs when losing money Part One \ The role... \ The impact of attractions Slide Nr. 11
12 Environmental impact of attractions Natural and non-tourist purpose man made attractions: Visitors often cause problems on the attraction itself Tourist purpose man made attractions and special events: Visitors often cause problems on the environment Pollution, destruction, often high consumption of land, water and energy Minimizing environmental impact is an important managerial task (Reinvesting Income ) Income from attractions is sometimes the only way to conserve / protect environment Part One \ The role... \ The impact of attractions Slide Nr. 12
13 Sociocultural impact of attractions Huge numbers of visitors can ruin the atmosphere Conflicts between visitors and normal users of nontourist purpose attractions (Churches, cathedrals, beaches ) The character of religious and traditional events may suffer from too many spectators Less reflected needs and desires of local people (e.g. Sea Resort Heiligendamm ) Improve health of people by providing recreation Kind of compensation to stressful jobs and daily life Part One \ The role... \ The impact of attractions Slide Nr. 13
14 The Attraction Product Slide Nr. 14
15 What is a product? A product is an offering of an business entity as it is perceived by both present and potential customers. It is A a product bundle of is benefits anything designed that can to be satisfy offered the to needs a market and wants, and for to attention, solve the acquisition, problems of, use, specified or consumption target markets. that might satisfy a want or a need. A product is composed of both tangible and intangible elements: it It may includes be as physical concrete objects, as a chair services, or dinner persons, plate places, or abstract organisations, as a feeling. and ideas. The utility derives from what it does for the customer. Kotler, 1994 Lewis and Chambers, 1989 Part One \ The attraction product Slide Nr. 15
16 Tangible and intangible elements Cathedral Roller coaster Chairs Burning candles Visitors Wooden constr. Seats Passengers Silence Screams Atmosphere Spiritual value Fear Excitement Part One \ The attraction product Slide Nr. 16
17 The visitor attraction as a service product The staff is part of the product itself Customers are involved in the production process Service products are not standardized The product is perishable and cannot be stored There is no tangible product to carry home The surrounding of the production process is a feature of the service Part One \ The attraction product Slide Nr. 17
18 The three levels of the attraction product Augmented Product Ancilliary services such as catering and retailing Tangible Product Core Product Range of rides and on-site attractions Procedures for handling complaints Brand name such as Disneyland, Center Parks Excitement and/or atmosphere Quality of service Safety Car parking Sharing the park with other people Weather conditions Opening Time Services for visitors with special needs Part One \ The attraction product (After Kotler, 1994) Slide Nr. 18
19 Attractions and the product life-cycle Introduction Growth Maturity Decline Usage or sales volume Time (After Kotler 1994) Public and voluntary operated attractions may never die! Decline phase for the Pyramids?! Competitors?! Relaunch of natural attractions?! Part One \ The attraction product Slide Nr. 19
20 The Visitor Attraction Market Slide Nr. 20
21 The visitor attraction market Success of an attraction depends on the market respond There is no single attraction market to be defined, identified and measured Market research is weak as: - private sector dominates ownership of attractions - we know little why people visit attractions at all - many attractions lack in sufficient monitoring systems Part One \ The visitor attraction market Slide Nr. 21
22 Market segmentation Geographical - where the visitors live / come from Demographics - age, sex, race Psychographic - attitudes and opinion coming from social class, lifestyle Behavioristic - relationship with the product, benefits sought Part One \ The visitor attraction market Slide Nr. 22
23 Market segmentation, e.g. demographic / age Child Teenager Young adult Young couple Young couple with baby Growing family Empty nesters Elderly Part One \ The visitor attraction market New experiences; Other children to play with. Paternal guidance and support New experiences, Excitement, Status, More independence from parents, other teenagers, active participation New experiences, freedom of action, other young adults, active participation New experiences, romance, solitude facilities for babies, convinience for people with babies Economy e.g. family ticket, something for all the family Chance to learn something, more passive participation Whatching rather than doing, economy, company of other people, easy accessibility for people with mobility problems Slide Nr. 23
24 The Business Environment Slide Nr. 24
25 The business environment and visitor attractions Macro - environment - general societal forces on a national or international scale - strong influence but not controlled by organization - P E S T (PEST - Analysis) Micro environment - 5 main components: organisational structure, suppliers, marketing intermediaries, customers, competitors, - can be influenced or controlled by organization a complex web, changing constantly over time Part One \ The business environment Slide Nr. 25
26 Macro-environment Political factors - cover all actions of governmental bodies Ecomnomic factors - influencing the attr. Market > disposable income - influencing attr. Product > inflation, interest rates Sociocultural factors - demographic and cultural trends, consumer behavior Technological factors - influence product, management and competition Part One \ The business environment Slide Nr. 26
27 Micro-environment Organization - management structure and style, company culture, arrangement of functions Suppliers - F&B, Souvenirs, services for running the attraction Marketing intermediaries - tourist information, tour operators, travel writers Customers - existing customers are potential marketing intermediaries Competitors - difficult to identify competitors; but once identified to be evaluated: - main product, targeted market, strength & weaknesses, future plans Part One \ The business environment Slide Nr. 27
28 Macro environment two examples Factor in business environment Major theme park Small local authority museum Political Economic Sociocultural - Health and Safety law - Legislation on the rights of the part time workers - State of the economy - Interest rates due to the need for constant new product development - Percentage of the population in the younger age group - The changing stucture of the family - Laws affecting local government - Control on local authority expenditure - If a charge is made, the state of the economy, - otherwise of little importance - Percentage of the population in the middle age group and in the social classes A and B Technological Natural - New types of rides - Virtual reality - Management Information Systems - Weather - as most are open air, bad weather reduces visitor numbers - Need to keep up with the latest methods of interpretation - Weather - as most are under cover, bad weather is usually beneficial Part One \ The business environment Slide Nr. 28
29 Micro environment two examples Factor in business environment Organisation Suppliers Marketing intermediaries Customers Competitors Major theme park - Usually interpreneural - Mainly seasonal and part time staff - The rides and on-site attractions, catering products, souvenirs, - Tourist Information Centers, hotels which display literature, media, tour operators, existing customers - Significant brand loyalty, but few visits per annum - Regional & national catchment area - Other theme parks, amusement parks and arcades - Other attractions aimed at social Class C and D Small local authority museum - Often bureaucratic - Professional culture - Many permanent full-time staff - Artefacts, often from the public - Limited catering and souvenirs - Staff training through museum professional bodies - Tourist Information Centers, existing customers - Often heavy dependence on regular repeat visitors - Other attractions targeting: - social Class A and B, - visitors in the age group, - educational groups. Part One \ The business environment Slide Nr. 29
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