Download Document

IV
17
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Destination Marketing
Foreword:
“Marketing should focus on market creation, not
market sharing”
- Regis McKenna
IV
“To be wise, a man should read ten thousand
books and travel ten thousand miles.”
- Li Bai, Chinese poet, Tang Dynasty
17
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
OBJECTIVES
After reading this chapter, you should be able to:
• Discuss the benefits of tourism.
• Explain tourism strategies and different option
for creating and investing in tourism attractions.
• Understand how to segment and identify visitor
segments.
• Explain how central tourist agencies are
organized.
IV
17
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Destination Marketing
The Carolina Panthers
• Best known as a football team in the National
Football League (NFL), the Carolina Panthers is
also an important member of the hospitality &
tourism industry in Charlotte and the Carolinas.
IV
– the name Carolina Panthers was chosen to demonstrate
that this team serves two states
• Unlike most teams that use municipal stadiums, the
Panther’s owner, former Baltimore Colts player
Jerry Richardson, owns the 73,504-seat stadium.
– private ownership permitted product line planning
for the entire stadium
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Destination Marketing
The Carolina Panthers
• The stadium was built in downtown Charlotte on
property that had badly deteriorated and in need
of urban revitalization.
• Huge lifelike statues of black panthers, with emerald
green eyes, beautiful landscaping, nearby parking,
and a Panther’s pro shop, serve as attractions for
off-season visitors.
• While ticket sales represent the most important
product, other lines were carefully planned to
increase revenue & enhance the excitement and
image of the team.
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
IV
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Destination Marketing
The Carolina Panthers
• The stadium was planned to permit great views of
the playing field from all seats from each of the
three areas:
IV
– lower Level (less expensive)
– middle Level (club level)
– third Level (luxury suites).
• Jerry Richardson’s personal suite is not on the
50-yard line but directly behind the goalposts,
– a position often thought of as “cheap” seating
17
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Destination Marketing
The Carolina Panthers
• Prior to opening the stadium, “Personal Seat Licenses”
(PSLs) were sold to fans, and all seats were sold out
by opening day.
IV
– a PSL is not a game ticket—it allows fans to buy tickets
• A PSL may be sold or passed on to heirs. Originally
PSLs sold for $1,500 to $3,000 but by 2007 had
appreciated to $5,000 to $10,000.
• Luxury boxes facing the playing field surround level
three of the stadium, and include a mix from private
corporate suites to shared suites in which tables for
four are leased by individuals or companies.
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Destination Marketing
The Carolina Panthers
• All suites receive first-class food and beverage
attention with food prepared by four full-time chefs
in ultramodern stainless-steel kitchens in the stadium.
• The interior portion of level three was planned as six
separate dual-purpose areas, and on nongame days is
use by sales meetings, reunions, and many other
group functions such as high school proms.
• The six club areas have permanent bars for serving
alcohol beverages, televisions & drop-down screens,
stage areas, and wait-staff service.
IV
17
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Destination Marketing
The Carolina Panthers
• Signage is also a product line, and advertising rights
are sold beginning with the name Bank of America
Stadium and continuing with signage throughout.
• Richardson knew signage is an important product
line but demanded it be provided in a noncluttered,
sophisticated manner that would not offend fans &
would also provide great exposure for advertisers.
IV
– no field-level signage exists at this stadium, which
means that available signage is relatively expensive
17
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Destination Marketing
The Carolina Panthers
• The success of product lines is not accidental, and a
professional sales team is needed to ensure success.
IV
– a five-person team is employed full time to sell the many
Panthers products to corporate clients
• Careful attention to details in the planning and
management of the complete product line of the
Carolina Panthers created a unique hospitality and
tourism attraction for Charlotte and the Carolinas.
17
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
The Globalization of the Tourist Industry
Introduction
• The British Tourist Authority’s definition of tourism:
– “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.”
• The world has become a global community, opening
places unimaginable decades earlier, and travel is a
global business with an expanding market.
• The world tourism industry has market leaders, but
the top-ten destinations in the world accounted for
only half the total tourism market in 2006.
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
IV
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
The Globalization of the Tourist Industry
The Top Ten
IV
Table 17-1 The World’s Top Tourism Destinations (International Tourist Arrivals)
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
The Globalization of the Tourist Industry
Destination Planning & Marketing
• Market entry in tourism is open, & new destinations
can acquire market share and the economic and
social benefits of tourism.
• Successful destination planning & marketing can
bring hundreds of millions and even billions of
dollars in revenue to destinations.
• New supportive industries, jobs can be created,
standards of living increased, and the interchange
of cultures assists the quest for world peace.
• Destination marketing is a career worthy of college
and university graduates.
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
IV
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Importance of Tourism to a Destination’s Economy
Introduction
• Tourists travel to destinations, places with some form
of actual or perceived boundary, such as physical
boundary of an island, political boundaries, or even
market-created boundaries
• A commonly packaged tour of Central America
includes only two or three nations, such as Costa
Rica, Guatemala, and Panama.
IV
– others are excluded for political instability or infrastructure
• While Australia & New Zealand are often packaged
together for the North American visitor, Australia
has worked hard to make it a single destination.
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Importance of Tourism to a Destination’s Economy
Becoming a Recognized Destination
• Desire to become a recognized destination presents
a difficult marketing challenge.
• Macrodestinations such as the United States contain
thousands of microdestinations, including regions,
states, cities, towns, and even visitor destinations
within a town.
• Thousands of visitors fly to Orlando and proceed
directly to Disney World, where most or all of their
vacation is spent.
– these tourists do not view Florida or Orlando as their
destinations, but rather Disney World
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
IV
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Importance of Tourism to a Destination’s Economy
Benefits of Tourism
• Tourism’s most visible benefit is direct employment
in hotels, restaurants, retail establishments, and
transportation.
• Second, less visible benefits are support industries
and professions many of which pay considerably
more than the visible employment opportunities
• The third benefit is the multiplier effect as tourist
expenditures cycle through the local economy.
• Tourism’s fourth benefit is state and local revenues
derived from taxes on tourism, and helps shift the
tax burden to nonresidents.
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
IV
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Importance of Tourism to a Destination’s Economy
Benefits of Tourism
• Tourism also yields a fifth benefit, the export of
locally made products.
• Estimates of visitor spending on gifts, clothing &
souvenirs are in the range of 15 to 20% of total
expenditures.
• Many tourist destinations provide governmentsupported market areas for the sale of locally
produced handicrafts.
IV
– an income source to local producers and an interesting
and sought-after shopping experience for visitors
17
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Importance of Tourism to a Destination’s Economy
Benefits of Tourism
• Due to location, climate, limited resources, size, and
cultural heritage, some places have few economic
choices other than to participate in tourism.
• Destinations may not welcome tourists uniformly,
and some engage in tourism with mixed emotions
and, at times, ambivalence.
• This is becoming a serious issue in many parts of
the US, particularly the West.
– Colorado voted against using of tax revenues for tourism
– residents many small communities are increasingly
opposed to the use of tax receipts for tourism promotion
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
IV
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Importance of Tourism to a Destination’s Economy
Management of the Tourist Destination
• Destinations that fail to maintain the necessary
infrastructure or build inappropriate infrastructure
face significant risks.
IV
– Italy’s Adriatic coast has been devastated by publicity of
brown algae growth making swimming almost impossible
– some of Africa’s game parks are being turned into
dust bowls by tourists in four-wheel-drive vehicles
• A destination’s attractiveness can be diminished by
violence, political instability, natural catastrophe,
adverse environmental factors, and overcrowding.
– the 9/11 attacks created fear of travel to the US
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Importance of Tourism to a Destination’s Economy
Management of the Tourist Destination
• Destination marketing is an integral part of
developing and retaining a location’s popularity.
• Too often, planners focus only on destination
developments without attention to retaining and
preserving attributes that attracted travelers to
the destination in the first place.
• Several locations have been identified as suffering
from a lack of destination maintenance.
– Pattaya, Thailand; Bali, Indonesia; Huatulco, Mexico.
– North American destinations are also experiencing
visitor overuse, including the Sedona, Arizona, area
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
IV
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Importance of Tourism to a Destination’s Economy
Management of the Tourist Destination
• A theory offered by futurist August St. John argues
that a resort destination will experience a life cycle
similar to the product life cycle.
IV
– and eventually go into decline, or the destruction stage
• Tourism managers must manage their products
and make sure that during the growth stage the
foundation is built for an infrastructure that will
support future tourism demands.
• In some cases, sustaining tourism in the mature
stage may mean limiting the amount of tourists
to a number that the infrastructure can handle.
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Importance of Tourism to a Destination’s Economy
Management of the Tourist Destination
• Tourist development must balance temptation to
maximize tourist dollars with preservation of the
natural tourist attractions and the quality of life
for local residents.
IV
– those destinations that do not manage their product
may have a short life
• Tourist destinations that build solid infrastructures
can look for increased business by expanding from
a seasonal product to a multiseasonal product or by
expanding the geographic base of their product.
17
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Importance of Tourism to a Destination’s Economy
Sustainable Tourism
• Tourism planners need to take into account the
capacity of a location’s environment to support all
[of the area’s residents, not just tourists].
IV
– without such planning, a destination can be damaged
to the point that travelers will stay away
• Sustainable tourism can mean giving up current
revenues from tourism by limiting capacity to
ensure a demand for tourism in the future.
• Sustainable tourism is a concept of tourism
management that anticipates & prevents problems
that occur when carrying capacity is exceeded.
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Importance of Tourism to a Destination’s Economy
Sustainable Tourism - Carrying Capacity
• Carrying capacity is determined by an environmental
impact assessment (EIA), typically with these steps:
– inventory the social, political, physical, and economic
environment
– project trends
– set goals and objectives
– examine alternatives to reach goals
– select preferred alternatives
– develop implementation strategy
– implement
– evaluate
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
IV
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Importance of Tourism to a Destination’s Economy
Sustainable Tourism - Ecotourism
• Ecotourism is one of the fastest growing niche
markets in the travel industry & generally viewed
as representing sustainable tourism.
• It occurs only when government & private industry
cooperate in planning and strict enforcement of
regulations and laws.
• Modified Environments are ecotourism subsets, such
as resorts, ski lodges, golf courses, and city centers
that have developed habitats on their grounds that
encourage wildlife.
– Peregrine falcons have learned to thrive in US cities
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
IV
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Importance of Tourism to a Destination’s Economy
Sustainable Tourism - Ecotourism
• Rather than manicured lawns & plants with no food
value to animals, some resorts are encouraging
natural areas, nesting sites, and artificial reefs.
IV
– guests are usually thrilled to see wildlife on the grounds
• Admittedly, problems can occur as deer populations
explode or dangerous predators from poisonous
snakes to crocodiles & cougars find the grounds
to their liking.
17
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Importance of Tourism to a Destination’s Economy
Industry and Community Cooperation
• Many communities that directly depend on tourism
fail to coordinate important sectors of the economy.
• Estes Park, Colorado, offers an example:
IV
– retirees and other residents are upset by tourism traffic
– residents want a rustic mountain getaway with modern
conveniences, provided through tourism-based revenue
• Communities with these divisions face continuous
discord among important constituencies.
– successful long-run tourism destinations require
cooperation in planning among constituencies
17
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Importance of Tourism to a Destination’s Economy
Carbon-Neutral Vacations
• Many adjustments lie ahead for hospitality providers
and their guests, as the number of concerns about
global warming and demand for carbon-neutral
vacations increases.
IV
– the challenge is already difficult at some luxurious
resorts with plentiful energy-intensive amenities
• Because leisure travel is emotional & discretionary,
guests have come to expect amenities and services
without questioning the environment.
• The emphasis on CO2 emissions will not be popular
or acceptable to all guests.
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Importance of Tourism to a Destination’s Economy
Carbon-Neutral Vacations
• Some guest privileges formerly taken for granted
and now being questioned.
IV
17
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Introduction
• Tourist competition is fierce amid a growing and
constantly changing tourist market, where, in
addition to strong tourist destinations, declining
places upgrade, and new places appear.
• There are countless examples of destinations
rediscovering their past, capitalizing on the
birthplace of a famous person, an event, battle,
or other “hidden gems.”
• Some destinations are not likely to be international
tourist destinations, but can be effective tourist
products in the regional tourism market.
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
IV
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
IV
See this feature on page 509 of your textbook.
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Close to Home
• With the current US trend toward shorter but more
frequent vacations, many places within two hundred
miles or so of major metropolitan areas have found
new opportunities to access the tourist market.
IV
– tourism bureaus tout the theme, “Stay Close to Home”
– Louisiana’s Office of Tourism spent $6 million promoting
a summer travel bargain program to a 500-mile market
• Cities are also creating tourist attractions.
– Darling Harbour in Sydney is a major tourist attraction
– in the Dallas metroplex a trail system is being developed
for & horseback riding along the Trinity River
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Cost versus Benefit
• Like other consumers, tourists weigh costs against
benefits of specific destinations, and investment of
time, effort & resources against reasonable return in
education, experience, fun, relaxation & memories.
IV
– destinations must respond to the travel basics of cost,
convenience, and timeliness
• Convenience includes travel time from airport to
lodging, language barriers, cleanliness and sanitary
concerns, access to amenities, and special needs.
• Timeliness means risk factors like political instability
civil disturbances, currency fluctuations, safety, etc.
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Events
• Events & attractions are the primary strategies used
by tourist destinations to attract visitors, and may be
offered by nearly every community despite size.
IV
– Pukwana, SD, pop. 287, features a Turkey Trot and lawn
mower race & both have received national publicity
– the annual Sturgis Motorcycle Rally attracts hundreds of
thousands of visitors this South Dakota town of 6,442
• Organizations commonly responsible for tourism
usually have responsibility for planning & organizing
events designed to bring visitors to the community.
17
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Events
• Many times, local organizations plan annual events
designed for the enjoyment of community members.
IV
– sponsors often expect financial assistance from tourism
funds, but these events may attract few outside visitors
• Local organizations may have worthy ideas for
events to attract visitors and should be supported.
– if tax-based support is provided, the organization must
adhere to guidelines
• By law, government tourism funds generally must
be spent on activities that bring outside visitors and
monies to the community.
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Events
• Events vary in complexity & contribution to a
community’s tourism base, and organizations
planning such events must have these characteristics:
IV
– adequate organization & experience to plan, organize,
and market the event
– a marketing plan, including a description of target markets
– a quantitative objective for number of expected visitors
– a method to derive a count or estimate of the number of
visitors who attended the event
• Organizers may require payment to bring the event,
or changes/improvements in infrastructure and
services before agreeing to bring the event.
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Events
• Professional event planners within tourism agencies
establish requirements for desirable events:
IV
–
–
–
–
–
–
–
the event must attract a minimum number of visitors
complement & enhance cultural nature of the community
should be replicable in future years, ideally annually
part-time paid workers should be from the community
events must avoid destruction of private/public properties
use services of local companies as much as possible
events should provide guests for local hotels if bed tax
monies are used in their promotions
– should allow/encourage participation by local residents
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Events
• Tourism planners should conduct an audit of the
existing resources of their communities to determine
opportunities for events.
• Beyond economic value, events help create an
identity for a community.
IV
– urban newspapers & suburban weeklies often publish
lists of events occurring within a day’s driving distance
– state and local tourism offices do the same
– nearly every European country now has a 900 number
you can call in the US for event information
17
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Event Marketing
• Events attracting a desired market & harmonious
with local culture can have beneficial results.
IV
– particularly if it regularly reoccurs over a period of years
• One-time events, or those requiring substantial
capital investment for a community may not offer
sufficient economic returns.
• A common reply by promoters is that public relations
value of the event outweighs cost considerations.
– carefully, objectively analyze this before acceptance
• Events must also be examined for cultural/societal
impact they may have on the host community.
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Event Planning - A Decision Framework
•
•
•
•
What strategic factors relate to this event?
What is the profile of visitors?
What is the expenditure profile?
What are the economic and social costs and benefits
of the event?
• What is the event’s profile?
IV
See an expanded version of this feature on
pages 511-512 of your textbook.
Reprinted by permission of Elsevier Science, Inc., Juergen Gnoth and Syed Aziz Anwar, “New
Zealand Bets on Event Tourism,” Cornell Hotel and Restaurant Administration Quarterly 41, no. 4
(2000): 82–83, © Cornell University.
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Attractions
• Attractions may be natural such as Niagara Falls or
manufactured such as The Shopping Areas of
Buckingham Palace, Hong Kong, or the Vatican.
• Many nations have recognized the value of natural
attractions & have created national or state parks to
protect them.
IV
– the sheer numbers of visitors wishing to experience
attractions threatens the ability to protect them
• Historic attractions such as the pyramids of Egypt
and Mexico are also at risk with increased visitor
numbers.
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Attractions
• Long-run success of tourism will depend on
manufactured attractions to satisfy travel desire.
• New attractions are continuously needed, which
requires tourism investment.
• Tourism investment ranges from relatively low-cost
market entry for festivals or events to multimilliondollar infrastructure costs of stadiums, transit
systems, airports, and convention centers.
• Regardless of cost, urban renewal planners seek to
build tourism into their city’s revitalization.
– Boston’s Quincy Market; New York’s Lincoln Center
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
IV
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Attractions
• Ability to concentrate attractions, facilities, and
services in a convenient, accessible location is
essential to create a strong destination pull.
• Tourist expansion is highly dependent on public
investments, woefully inadequate without private
investment and market mechanisms to respond to
changing consumer needs and wants.
• In centrally planned economies, governments control,
plan, and direct tourist development.
– tourism is necessary to earn hard currencies for
trade & development and serves national purposes
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
IV
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Attractions
• Many nations promote private investment through
joint ventures, foreign ownership, and time sharing
for individual investors.
• Destination tourism in the US depends on public &
private partnerships or joint developing in planning,
financing, and implementation.
– public authority is required to clear, develop, and write
down land costs & make infrastructure investments
– the destination must often subsidize or provide tax
incentives for investment in hotels, transit, etc.
– restoration is often carried out by nonprofits, like the
National Historic Trust and the US Park Service
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
IV
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Rejuvenating a Destination
• Tourist destinations can become dated, tacky, and
undesirable for contemporary travelers.
IV
– the Waikiki area on the island of Oahu fell victim to this
• The city made a major commitment to bring it back
as a great destination, and as of mid-2007, $2 billion
had been spent renovating Waikiki, with another $1
billion committed.
• Rejuvenating a destination requires cooperation of
various government entities and several sectors of
private enterprise.
– including heavy involvement by the hospitality industry
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Waterfront Attractions
• In much of the world, cities & towns have finally
realized the tremendous value of their river, lake
and ocean waterfronts.
• Many were used for warehouses, docks, power
generation & heavy industry, and were ugly,
dangerous, often polluted areas.
• Cities such from Los Angeles to Hamburg, Germany
have discovered gold in redeveloping these areas.
IV
– for upscale housing, restaurants, hotels, shops, and even
maritime commerce all within a relatively small area
17
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Investment - More than Money
• The development of areas such as waterfronts for
multipurpose living is an extension of the natural
attraction that cities have always held for travelers.
IV
– it should not be a surprise that people attract people
• Destinations find they must make more than financial
or hospitality investments to attract tourists.
– they must expand public services.
– they must promote tourism internally to citizens, retailers,
restaurants, financial institutions, the public/private sectors
– they must invest in recruiting, training, licensing, and
monitoring tourist-related businesses and employees
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Casinos as Attractions
• States & municipalities look at jobs and tax revenues,
and in 2006, commercial casinos employed 366,000
people, paid over $5 billion in direct gaming taxes.
• Many observers say this is not all good news, and
that, among other things:
– casinos can take business from other venues
– revenues from local residents often leave the area as
profits for out-of-state corporations
– casinos don’t provide the kind of societal benefits as a
biotech firm, a hospital, a university or other enterprises
– casinos foster societal problems like pathological gambling
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
IV
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Casinos as Attractions
• Research has shown that casinos do not take business
away from local restaurants and they do create jobs.
• A poorly planned casino can be a determent to the
area whereas a properly planned one can be
beneficial to the region.
• From a tourism perspective, and maximized benefits,
gaming works best when it is part of several tourism
attractions for the area, not the only attraction.
– gaming funds can be a source to create tourist destinations
– a casino can also serve as a catalyst to revitalize a tourist
area fallen on hard times
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
IV
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Indian Gaming
• Legalized gambling on American Indian reservations
is called “The Native American Success Story.”
IV
– operations & businesses supporting provide 600,000
jobs, with revenues being estimated at $22.6 billion.
• Not all observers see them as healthy for the broader
community & critics say they exist despite the fact
states & neighboring areas haven’t legalized casinos.
• Because these locations are often remote rural
communities, they attract the bored, lonely, and not
wealthy, who become addicted to gambling, thus
creating financial hardships for their families.
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Stopover Tourism
• Many visitor destinations are in fact only stopover
destinations for travelers on their way elsewhere.
• Singapore has more than twice the number of annual
visitors than its population, but visitors stay less than
3 days and 21% are in transit or stopover guests.
• Cities at the edge of large metroplex areas such as
Lewisville, Texas, north of Dallas, also serve as
stopover destinations.
– many visitors prefer to stop outside a metroplex at a
convenient roadside motel rather than attempt to find
lodging in the city center
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
IV
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Segmenting and Monitoring the Tourist Market
• A decision to spend disposable income on travel vs.
furniture, a boat, or other purchase alternatives
involves important psychological determinants.
• These determinants can be used as segmentation
variables, along with demographics and lifestyles.
IV
– a growing percentage of retirees in many nations
has vastly expanded the tourism business
– increasing numbers of two-career couples has resulted
in a trend toward shorter, more frequent vacations
– business travel now includes mixed business & leisure
17
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Segmenting and Monitoring the Tourist Market
• To capture the trend toward shorter vacations within
driving distance of home, new local & regional
tourist attractions have been growing
IV
– as have family-oriented resorts
• Foreign visitor travel is an increasingly important
segment of the North American travel industry,
since the decline of the US & Canadian dollars.
• Changing lifestyles & are a dynamic challenge for
the tourism industry in light of demographic trends
and income shifts.
17
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Segmenting and Monitoring the Tourist Market
• Tourism planners must consider how many tourists
are desired, which segments to attract, and how to
balance tourism with other industries.
IV
– choices will be constrained by climate, topography,
resources, history, culture, and facilities
• Tourist marketers must know customers, their needs
& wants, determine which target markets to serve, &
decide appropriate products, services, and programs.
– not every tourist is interested in a particular destination
– instead of a shotgun approach, destinations must take a
rifle approach and sharply define target markets
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Agritourism
• In an era in which most people in industrialized
nations are urban or suburban dwellers, farm and
ranch tourism has become increasingly important.
IV
– particularly true in many European nations, North America,
and Australia/New Zealand
– in a state known for skiing, agricultural activities boost
Colorado’s tourism outside of winter months
• Over 20% of those surveyed took more than three
agritourism trips each year.
– tourists from outside Colorado reported spending an
average of $860 per trip & in-state tourists, $368
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Space Tourism
• As a result Russian willingness to allow tourists on
their missions, there is now a travel agency, Space
Adventures, specializing in space tourism.
IV
– in April 2001, Dennis Tito became the first space tourist
when he paid $20 million to fly on the Soyuz taxi mission
to the International Space Station
• A number of private companies have been formed to
provide trips into space for tourists, including Virgin
Galactic, formed by Sir Richard Branson, founder of
Virgin Atlantic Airline.
17
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Space Tourism
• Space travelers will have to undergo elite cosmonaut
training, in a vehicle named SS2, which will climb to
50,000 feet altitude under a mother ship.
• After release, the SS2 will free fall for a few
seconds, fire its rockets, and accelerate into a
vertical trajectory climb to 360,800 feet.
• Those aboard the SS2 will enjoy a thousand-mile
horizon of the earth in zero gravity during a twoand-a-half hour flight.
IV
17
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Multi-Day Hiking and Religious Pilgrimages
• Potential tourists tired of traditional tourism
opportunities are a huge, growing market for
multi-day trekking (hiking).
• Hiking has a religious basis in pilgrimages to
significant religious sites such as the Camino de
Santiago de Campostela in northern Spain.
IV
– in 1990, the Cathedral registered 4,918 hikers (pilgrims),
but today over 100,000 people are recorded each year
• Millions of pilgrims visit Hindu, Buddhist, Islamic,
& other religious sites, and though most arrive by
some form of modern transport, many prefer to walk.
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Multi-Day Hiking and Religious Pilgrimages
• Trails are available for special-interest hikers with
cultural, scientific, religious, or gastronomical
interests, such as wine tours.
IV
– some trails such as the Milford in New Zealand are so
popular that visitor numbers are restricted
• Extended hikes are supported by tourism throughout
the world as they disperse visitors, lessen negative
aspects of tourism, and provide economic support
to rural communities.
– long, arduous treks will be completed in entirety by very
few tourists, but many are likely to hike portions of the
trails available
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Volunteer Vacationing
• Thousands of individuals choose to spend vacations
assisting others, particularly in underdeveloped
nations, an activity called purpose-driven tourism.
• Many churches & synagogues sponsor work
vacations for volunteers, to repair or build facilities,
work in orphanages, teach children sports or games
& assist many other ways.
• Nonaffiliated individuals also volunteer through
groups such as Globe Aware, to “give back”.
– and see their trip as a way to experience a country on a
deeper level
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
IV
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Medical Tourism
• Medical tourism is a fast & lucrative segment of
tourism, as people travel internationally to gain
access to less expensive health care.
• In 2003 there were 350,000 medical tourists, six
million by 2010, a number expected to grow to 16
million by the year 2017.
• In an effort to stay young, Baby Boomers are seeking
cosmetic surgery & dental work, elective procedures
not covered by insurance.
– creating a booming business for these procedures in
Mexico, Central America, Asia, and Eastern Europe
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
IV
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Medical Tourism
• International healthcare also provides access to
experimental procedures or treatments prohibited by
law in one’s home country.
IV
– such as experimental cancer treatments and treatments
using stem cells
• Some insurance companies in North America are
offering their customers, who qualify for healthcare,
the option to have it done at an international location.
– as an incentive, they will waive the deductable & co-pay,
and provide airfare and lodging during & after treatment
– they sell both the cost savings and the opportunity for a
free vacation to their client
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Identifying Target Markets
• A destination can identify target markets two ways.
– one is to collect information about its current visitors
• The second approach is to audit the destination’s
events & attractions and select segments that might
logically have an interest in them.
• One cannot assume current visitors reflect all the
potentially interested groups, as tourist segments
are attracted by different features.
• After a destination identifies its natural target
markets, planners should conduct research
to determine where these tourists are found.
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
IV
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Identifying Target Markets
• Analysis can uncover many or few natural target
markets, and if many are identified, relative potential
profit from each should be evaluated
IV
– if too few, investment may be needed in infrastructure
and events & attractions
• Tourism marketers know even though an area may
attract an activity-specific segment, there is great
potential in providing reasons for others to come.
– today, the top attraction in Las Vegas is shopping and
entertainment, not gambling.
17
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Self-Contained Attraction and Event Destinations
• While the historical concept of travel has been to go
someplace for a purpose, it can be argued that for
many contemporary pleasure travelers, the real
destination is the vehicle of travel such as a cruise
ship, river paddle ship, or a special railroad.
• These “moving destinations” offer a variety of events
for passengers, and dining is particularly important,
and pleasure of moving about in a special mode of
travel is the primary travel purpose
– upon reaching in-transit ports, not all passengers choose
to leave a cruise ship
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
IV
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
IV
See this feature on pages 523-524 of your textbook.
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Classification of Visitor Segments
• Several classifications have been used to describe
different visitor destination segments.
IV
– common classifications, based on if the tourist travels
with a group or independently are group-inclusive tour
(GIT) and independent traveler (IT)
17
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Classification of Visitor Segments
• Some classifications describing tourists by degree
of institutionalization and impact on destinations:
– Organized mass tourists. GIT. Little or no influence
over the travel experience other than to purchase one
package or another
– Individual mass tourists. GIT. Somewhat more control
over their itinerary. For instance, they may rent a car to
visit attractions
– Explorers. IT. They plan their own itineraries and
make their own reservations
– Drifters. IT. These people, the backpacker group,
seldom, if ever, are found in a traditional hotel
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
IV
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Classification of Visitor Segments
• Some classifications describing tourists by degree
of institutionalization and impact on destinations:
IV
– Visiting friends/relatives. VFR are people that stay in
the homes of friends or relatives
– Business travelers. Often any form of business including
conventions, trade shows, job seeking & other reasons
– Pleasure travel. An all-encompassing classification,
which may be of limited use without further segmentation
– Business and pleasure travelers. Many convention and
business travelers plan to incorporate a period of
relaxation prior to or after their business
17
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Classification of Visitor Segments
• Some classifications describing tourists by degree
of institutionalization and impact on destinations:
IV
– Tag-along visitors. The presence of tag-along children
has created a sub-industry of child care & entertainment.
– Grief travel. A segment more important as society ages.
– Education and religious travel. Includes students, those
on a pilgrimage & missionaries, and may be of limited use
in tourism planning unless further segmented.
– Pass-through tourists. Extremely important visitors to
states such as Kansas and Nebraska and to cities in Texas
that serve as convenient rest or overnight stopping areas.
17
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Classification of Visitor Segments - Plog
• Another well-known tourist classification system is
Plog’s categorization, with designations similar to
the groups mentioned previously.
IV
– but ranged from psychocentric to allocentric
• Plog observed that destinations are first discovered
by allocentrics (backpackers or explorers).
• As the natives discover the economic benefits of
tourism, services & infrastructure are developed
– allocentrics are turned off & find another unspoiled
destination
17
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Classification of Visitor Segments - Plog
IV
The nature of visitors
changes, with each new
group somewhat less
adventurous than the
preceding group.
Finally, a destination
becomes so familiar
the least adventurous
group of psychocentrics
finds it acceptable.
Figure 17-1 Plog’s categorization of destinations. The height of the curve indicates the number
of travelers in each category. Reprinted by permission of Elsevier Science, Inc., “Why
Destinations Rise and Fall in Popularity,” by Stanley C. Plog, Cornell Hotel and Restaurant
Administration Quarterly, 14, no. 4, p. 58, ©1974 by Cornell University.
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Monitoring the Tourist Markets
• One job of a tourist organization is to increase the
accessibility of a destination.
• Destinations need to closely monitor the relative
popularity of their various attractions by determining
the number and type of tourists attracted to each.
• Marketing information systems help identify and
predict environmental trends that are responsible
for these changes.
• Information should be collected on the changes in
the wants of existing markets, emerging markets,
and potential target markets.
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
IV
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Tourism Strategies and Investments
Monitoring the Tourist Markets
• Tourist organizations need information to stay
competitive, and tourist products must change to
meet the needs of the changing market.
• Emerging markets must be identified and served.
• New markets that can be served by the existing
tourist product must be identified.
• Tourist organizations trying to accomplish these
tasks without good information are at a
disadvantage.
IV
17
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Communicating with the Tourist Market
Competition Involves Image-Making
• Destination images are heavily influenced by
pictorial creations in movies or TV, by music &
in some cases by popular entertainers and celebrities.
IV
– The Sound of Music is still used by Austria
– Australia’s booming tourist business used actor Paul
Hogan of the hit film Crocodile Dundee
• Television affects destination attractiveness.
– the pub site for the TV hit Cheers became an overnight
tourist bonanza in Boston
– PBS serializations of English dramas opened Britain to
American audiences
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Communicating with the Tourist Market
Competition Involves Image-Making
• Destinations have formed partnerships with travel,
recreational & communication businesses on joint
marketing efforts.
• They advertise in national magazines and travel
publications and work with business-travel
promotions to link the growing business-leisure
segment of the traveling public.
• Many states have located welcome centers along
major interstate highways, and states target their
own residents with brochures, maps & calendars
of events.
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
IV
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Communicating with the Tourist Market
Competition Involves Image-Making
• Effective destination imaging requires congruence
between advertising and the destination.
• Glossy photographs of sunsets, beaches, buildings,
and events need to have some relationship to what
tourists actually experience.
IV
– otherwise, destinations run the risk of losing tourist
goodwill and generating bad word-of-mouth
• Many tourist destinations have discovered that it is
important to show residents interacting with tourists
in their advertisements.
17
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Communicating with the Tourist Market
UNESCO World Heritage Sites
• The designation of World Heritage Sites by
UNESCO is important to world tourism and
very important to selected sites.
IV
– in 2007, a total of 851 sites were listed, 660 cultural,
166 natural, and 25 mixed
• Each site belongs to the country in which it is located,
but it is considered to be of international interest to
preserve and protect these sites.
• The program designates & hopes to help conserve
sites of outstanding cultural or natural importance
to the common heritage of humanity.
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Communicating with the Tourist Market
Developing Packages of Attractions and Amenities
• An effective way of communicating with potential
travelers is by offering packages.
• Tourist organizations must develop a package of
attractions and amenities, as travelers make
comparisons about the relative advantages and
disadvantages of competing destinations.
• When combined with other activities such as golf,
shopping, dining, and museums, many packages
can be developed for different visitor segments.
– a destination may promote one, a few, or many of its
attractions
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
IV
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Communicating with the Tourist Market
Developing Packages of Attractions and Amenities
• Despite the best efforts of a destination to portray a
positive image via public relations & advertising,
image building is affected by reports of disturbing
societal problems, including human rights abuse.
IV
– charges of human rights abuse directly affect tourism
development and growth
• The government of Myanmar viewed its people as
“contributing labor” to the development of the
tourism-related infrastructure.
– international human rights observers viewed this
development as forced labor
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Communicating with the Tourist Market
Developing Packages of Attractions and Amenities
• Making a destination tourist friendly is the task of a
central tourist agency, which may be public, quasipublic, nonprofit, or private.
• Outside the United States, this agency is often run
by the central government, state, or province,
together with local government officials.
• The European Travel Commission, a twenty-fournation group bent on luring U.S. visitors to Europe,
coordinates promotional activity in the United States.
IV
17
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Communicating with the Tourist Market
National Tourism Organizations
• Countries & states usually have government or
quasi-government agencies that market
destination tourism.
IV
– on the national level, these are referred to as national
tourism organizations (NTOs)
• The NTO can formulate and develop the tourist
product or products of the destination and promote
them in appropriate markets.
• It can base its approach to development and
promotion on market research and thus achieve a
close match between the products and the markets.
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Communicating with the Tourist Market
National Tourism Organizations - Functions
• The NTO is responsible for the following functions:
–
–
–
–
–
–
–
–
IV
flow of research data
representation in markets
organization of workshops and trade shows
familiarization trips
participation in joint marketing schemes
support for new or small businesses
consumer assistance and protection
general education
• Like other organizations, NTOs must develop a
mission statement, goals, and a strategy.
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Communicating with the Tourist Market
National Tourism Organizations - Mission Guidelines
• The following guidelines were developed to assist in
formulating a mission statement:
– past experiences in the region with regard to tourism
must be considered
– the regional tourism organization must be prepared
to adapt the region’s mission
– the region’s tourism resources make certain missions
possible and others not
– the preferences of the region’s major tourism publics
must be considered
– the mission must be based on the region’s distinctive
competencies
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
IV
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Communicating with the Tourist Market
National Tourism Organizations - Goals
• Goals provide direction to the organization, such as
the following typical tourism goals:
IV
– economic; consumer
– environmental and natural resources
– government operations.
• The objective of national strategy formulation is to
translate current conditions in the region into desired
situations.
• Destinations marketers who are able to influence site
selection of groups such as associations can expect
invaluable visitors’ income for the community.
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Communicating with the Tourist Market
National Tourism Organizations - The US
• The US does not have a federally funded NTO.
– the Travel Industry Association (TIA) serves many
of the same functions for the United States as an NTO
IV
• It produces the official U.S. travel & tourism Web
site www.discoveramerica.com
– and does receive some support from the government
for the development and maintenance of the site
17
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Communicating with the Tourist Market
Regional Tourism Organizations
• To have a chance of being selected as a meeting site,
a destination must be included in the initial decision
process.
IV
– careful study & research is needed of those responsible
for site selection to find who the real decision makers are
– many state or provinces have their own tourist
organizations
• The owner & manager of hospitality organizations
such as a hotel, restaurant, or attractions that entice
tourists should work with STOs to see how they can
promote their business.
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Communicating with the Tourist Market
Regional Tourism Organizations
• City, county, or area convention and visitors bureaus
(CVB) promote tourism on the local level.
• Because they promote a specific destination, they are
called a destination marketing organization (DMO).
IV
– their major focus is to bring meetings & conventions to
local facilities & hotels with meeting space
• Sometimes the DMO and the convention center
management are two separate organizations, which
calls for close communication between the two
organizations.
17
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
Communicating with the Tourist Market
Regional Tourism Organizations - Travel Missions
• Travel missions are commonly organized by
government or quasi-government tourism promotion
bureaus, and have two general categories:
• Exploratory missions - the primary objective is to
explore new business opportunities and to develop
new markets.
• Travel sales missions - where participants intend
to make direct business contacts and close sales.
• Whether on a travel mission or not, promoting a
visitor destination is always a team effort.
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
IV
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
KEY TERMS
• Agritourism. Agriculture-based tourism that
includes farms, ranches, and wineries.
• Allocentrics. Persons with a need for new
experiences, such as backpackers and explorers.
• Destinations. Places with some form of actual or
perceived boundary, such as the physical boundary
of an island, political boundaries, or even marketcreated boundaries.
• Destination marketing organization (DMO). A
group that promotes a specific destination, often a
local convention and visitors bureau (CVB).
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
IV
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
KEY TERMS
• Familiarization trip (Fam trip). A trip where travel
agents or others who can send business to a tourist
destination attraction, cruise, or hotel are invited to
visit at a low cost or no cost.
• Infrastructure. The system according to which a
company, organization, or other body is organized
at the most basic level.
• Macrodestinations. Destinations such as the United
States that contain thousands of microdestinations,
including regions, states, cities, towns, and visitor
destinations within a town.
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
IV
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
KEY TERMS
• Medical tourism. One of the fastest growing and
most lucrative tourism markets. The tourists spend a
large amount on medical treatment, stay in top hotels,
and often travel around the country after
their surgery.
• Multiplier effect. Tourist expenditures that are
recycled through the local economy, being spent and
spent again.
• National tourist organizations (NTOs). A national
government or quasi-government agency that
markets destination tourism.
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
IV
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
KEY TERMS
• Psychocentrics. Persons who do not desire change
when they travel. They like to visit nonthreatening
places and stay in familiar surroundings.
• Tourism. A stay of one or more nights away from
home for holidays, visits to friends or relatives,
business conferences, or any other purpose, except
such things as boarding, education, or
semipermanent employment.
IV
17
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
EXPERIENTIAL EXERCISES
Try This !
• Choose an event (festival, concert, play, etc.) in your
area that draws tourists.
• Look into how the event is promoted and the benefits
it brings to the community.
• Is this event effectively promoted?
IV
– if yes, why?
– if no, how could it be improved?
17
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
INTERNET EXERCISES
Try This !
Support for this exercise can be found on the Web
site for Marketing for Hospitality and Tourism,
www.prenhall.com/kotler
• Find two different sites of tourism marketing
organizations; national, state or convention and
visitor bureaus.
• Evaluate how effective you feel these Web sites
are in promoting the destination.
IV
– explain your answer
17
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
tab
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458
END
IV
CHAPTER END
Marketing for Hospitality and Tourism, Fifth Edition
By Philip Kotler, John Bowen and James Makens
17
© 2010 Pearson Higher Education, Inc.
Pearson Prentice Hall - Upper Saddle River, NJ 07458