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Tourism Facilities Management
André Kretzschmar
University of Applied Sciences Stralsund
Leisure and Tourism Management
WS 2008/2009
Slide Nr. 1
Basics
Slide Nr. 2
Attractions
• Play a vital part in
encouraging visitors to a region;
• Without attractions there would be
a limited need for other tourism
services;
• Some argue that tourism would not
exist if it were not for attractions.
Part One \ defining attractions \ ...
Slide Nr. 3
Attraction defined
A designated permanent resource
which is controlled and managed
for the enjoyment, amusement,
entertainment, and education of
the visiting public.
(Middleton, 1988)
Part One \ defining attractions \ ...
Slide Nr. 4
What is an attraction?
• Natural Environment;
• Man made attractions
– Tourist,
– Non-tourist purpose;
• Special Events.
Boundaries are not always clear cut ! („Reichstag“ )
 Please visit: http://www.northumberland.gov.uk
Part One \ defining attractions \ ...
Slide Nr. 5
Terminology and Interrelations
• visitor attractions and tourist attractions
• attractions and destinations
• attractions, support services and facilities
• resort complexes
• attractions and activities
Part One \ defining attractions \ ...
Slide Nr. 6
Classification of visitor attractions
• Ownership
• Primary and secondary attractions
• Catchment area
• Visitor numbers
• Location
• Size
• Target markets
• Benefits sought
Part One \ defining attractions \ ...
Slide Nr. 7
Ownership of Attractions
Sector
(type of ownership)
Main types of
attractions owned
Public:
- government,
- local authorities,
- nationalised
industries.
Museums, galleries
Ancient monuments
Archaeological sites
Historic buildings
Country parks
Forests
Private:
- Commercial
organisations.
Theme parks
Zoos
Marinas
Voluntary:
- Trusts & charities.
Part One \ defining attractions \ ...
Historic buildings
Heritage centres
Steam railways
Main motives for ownership an
operation
Main priority
Conservation
Other priorities
Education, public access, increased
leisure opportunities for the community,
catalyst for tourism development,
income, visitor management
Main priority
Profit
Other priorities
Entertainment, max. visitor numbers,
market share, exploit growth markets
Main priority
Conservation via income from
visitors
Other priorities
Education, visitor management
Slide Nr. 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. 9
Development
Feasibility Study
Slide Nr. 10
Feasibility study contents
• The market study
• Who will visit the attraction?
- domestic and foreign holidaymakers, day trippers,
School and college groups, local residents
- age, sex, class, stage in family life-cycle
• How many people will visit the attraction?
- population of catchment area, number of holidaymakers visiting
the area, competitors targeting the same market segments
• Where they will come from?
- catchment area
• When will the visitors come?
- degree of seasonality affects staffing, attraction capacity and
cash flow management
Part Two \ Development process \ Feasibility study
Slide Nr. 11
Feasibility study contents
• Site selection criteria
• Proximity to major centres of population
• Transport networks and their reliability
• Existence of other attractions in the area
• Socio-economic profile of the catchment area
• Availability of suppliers/services
• Amount, type, quality and costs of land
• Regulations on the use of land
• The climate
• Availability of qualified labour at acceptable costs
• Public sector financial assistance and ‘help in kind’
• Attitude of local community towards planned project
• …
Part Two \ Development process \ Feasibility study
Slide Nr. 12
Feasibility study contents
• Financial viability
• based on calculation of COSTS and REVENUES
• Depending on the type of organization viability means
to produce a profit or surplus on running costs
• Cashflow management
• Break-even analysis
Profit
Costs
Break-even point
Variable costs
Fixed Costs
0
Number of visits
Part Two \ Development process \ Feasibility study
Slide Nr. 13
Development
Business Planning
Slide Nr. 14
Why Plan?
• Identify what business you are in;
• To determine where you are now;
• Determine where you want to be in the future
- 12 months / 3 years / 5 years
(clear, measurable objectives);
• Identify how to get there
- how do you achieve those objectives?
(action plan);
Part Two \ Development process \ Business Planning
Slide Nr. 15
What does planning encompass?
• Business is primarily about one thing only,
determining what it is the consumer wants
and providing it at a profit.
• Strategic positioning;
• Market research;
• Financials;
• Marketing strategy;
• Human resource management;
!
• Operational planning.
Part Two \ Development process \ Business Planning
Slide Nr. 16
Management
Marketing Planning
Slide Nr. 17
Visitor attractions as service products
1. Staff is part of the product itself
- attitudes and behaviour affect enjoyment
2. Intangible elements dominate the attraction product
- encourage to buy on basis of an imagination
3. The product is perishable
- ensure consumption/income before product perishes
4. Customers are part of the production process
- affects on experience are largely outside control
5. Service products are never really standardized
- quality control difficult; guarantees??
Part Three \ The marketing concept
Slide Nr. 18
visitor attractions and tourism marketing
• The product is an experience
- that begins in advance of consumption and continues …
- visitors rarely distinguish between responsibilities
• The product offers only shared use rights
- try to avoid conflicts between different groups
• The product offers only temporary use rights
- “the longer the stay the higher the spending”
• The product is rarely being delivered to the customer
- good signposting, directions and brochures are essential
• The demand for the product is highly seasonal
Part Three \ The marketing concept
Slide Nr. 19
Scope of strategic marketing planning !!!
• Where are we now?
- analysing the organizations current situation and direction
• Where do we want to be in the future?
- establishing mission statements, setting goals and objectives
• How are we going to get there?
- devising strategies and tactics helping to achieve these goals
and objectives, and looking at implementation issues
• How will we know when we get there?
- monitoring and performance evaluation strategies,
and systems for modifying strategies in response to monitoring
Part Three \ Strategic marketing planning
Slide Nr. 20
SWOT analysis
Strengths
Weaknesses
internal factors
within control
(current situation)
Opportunities
Threats
external factors
outside control
(market direction)
Part Three \ Strategic marketing planning \ Where are we now?
Slide Nr. 21
What to do with the SWOT?
• Every section holds potential to put forward strategies
• For example, weaknesses and threats can be converted
to strengths and opportunities. Whilst strengths can be
matched to opportunities.
Weakness:
few visitors in
off-peak season
Conversion Strategy:
attract school-group visits at
low fares in off-peak season
Strengths:
- balanced cash flow
- loyal visitors (return visits)
- grater awareness (parents, relatives)
- sanitised public image
- ….
Part Three \ Strategic marketing planning \ Where are we now?
Slide Nr. 22
Product positioning
• Where customers perceive you to be in the marketplace
Expensive
Inexpensive
Expensive
Exciting
Theme Park
( )
Boring
Boring
Positioning disparity
Competitor analysis
Inexpensive
Exciting
• If there are disparities between the customer and the
manager‘s viewpoint:
- change the market or the product in order to
reflect/match the views of the customers!
Part Three \ Strategic marketing planning \ Where are we now?
Slide Nr. 23
Management
Implementing Marketing Strategies
Slide Nr. 24
Basic statements
Marketing strategies are generally implemented through
Marketing Plans.
Implementing marketing strategies is mainly about
manipulating the Marketing Mix.
Implementing marketing strategies requires to keep up
with the latest Developments in Marketing.
Part Three \ The implementation of marketing strategies \ How are we going to get there?
Slide Nr. 25
Marketing Mix
• Place of purchase
• Distribution
• Pre-booking
• Pre-purchase
• Intermediaries
lace
Booking agencies
• Ticket systems
P
• Literature
• Advertising
• Signposting
romotion
• Sponsorship
• Direct marketing
• Sales promotion
• Personal selling
• Press and public relations
P
• Product levels (Kotler)
• Designed characteristics
• Service components
• Image / Reputation
• Positioning
roduct
• Packaging
• Branding
• Quality
P
Price
• List price
• Discounts
• Concessions
• Value for money
• Cost of travelling
• Methods of payment
• Price / Quality trade off
Part Three \ The implementation of marketing strategies \ How are we going to get there?
Slide Nr. 26
The seven Ps
• People
– staff in terms of:
training, appearance, behaviour, customer contact, …
• Physical evidence
– environment
layout, noise, cleanliness, furnishing, …
• Process
– corporate policies and procedures
employee empowerment, customer involvement, …
• Extension of the ‘product’ category !
but emphasizes the importance of those three factors
for service products
Part Three \ The implementation of marketing strategies \ How are we going to get there?
Slide Nr. 27
How will we know when we get there?
• Evaluation requires that:
- the marketing strategy contains measurable targets
- there are management information systems, providing
up-to-date information of the organizations performance
- must provide internal data on the performance
- and external information on business environment
- there are control mechanisms to allow corrective actions
• Corrective actions should be fed back into the strategy!!!
Part Three \ The implementation of marketing strategies \ How will we know when we get there?
Slide Nr. 28
Management
Human Resource …
Slide Nr. 29
Human Resource Management
• Considered to be the most important aspect of
management
• Attitudes and abilities of staff have a crucial impact on
the visitors experience
• Labour costs are likely to be the largest single items on
the attractions budget
Part Three \ Human Resource Management
Slide Nr. 30
Problems of HRM at visitor attractions
Tourism industry suffers from bad reputation in HRM
•
High turnover of staff
•
Seasonality of demand
•
Poor status of jobs
•
Lack of career structures
•
Unusually demanding jobs
•
lack of management expertise
•
Lack of widely recognized qualification
and training schemes
Part Three \ Human Resource Management \ Problems
Slide Nr. 31
Management
Quality …
Slide Nr. 32
Quality management and services
• No standardized product
- difficult to adopt standardized quality control systems
- affected by a number of variables
- the product is different for every customer
• Intangibility and perishability
- ‚faults‘ in the product cannot be easily seen
- not ease to replace a ‚faulty‘ product
• Services are often complex products
- involving a huge number of elements which are
interdependent and difficult to monitor
Part Three \ Quality management
Slide Nr. 33
Quality management systems at attractions
• There are three main points to consider:
- what definition of quality to use
- what performance standards to use
and what measurement system to implement
- what systems to adopt to achieve quality
Part Three \ Quality management
Slide Nr. 34
Visitor management
•
visitor management incorporates aspects of both:
quality management and green issues, and is the most
critical part of the day-to-day management at the site
• Tries to ensure an experience without disturbances
by providing a trouble-free sequence of events
• Aims to minimize negative environmental and
socio-cultural impact caused by the use of the attr.
• Although most important for non-purpose built attractions,
there is a certain relevance for all types of attractions
Part Three \ Visitor management
Slide Nr. 35
Visitor management
Financial
conditions
Legal
conditions
Human
resources
Experience
without
disturbances
Maximize
quality of
product/service
Visitor
expectations
Visitor
satisfaction
Visitor
Management
Management
objectives
Performance
Conservation:
- environment
- and assets
Marketing
activities
Part Three \ Visitor management
HRM
Operational
management
Minimize
negative
impact
Slide Nr. 36
Problems to deal with
• Damage on environment caused by visitors
- wildlife, flora and fauna, pollution by traffic
• Damage on assets caused by visitors
- intentional, unintentionally caused by heavy use
• Disturbances in visitor flow
- bottleneck situations, waiting times
• Accessibility of certain areas
- restricted access caused by construction work
- distances between attractions on site
- handycapped visitors
Part Three \ Visitor management
Slide Nr. 37