4 Destination competitiveness Flashcards
Product of tourism sector:
is an experience that is delivered by a destination to its visitor
the experience if product not by a single firm by all players who impact the visitor experience. e.g. tourism enterprises, other supporting industries and organizations, DMOs, public sectors and local residence.
we have more tourists but more competition
destinations are trying to establish themselves as brand
Competitivenss =
ability and performance of a firm, sub- sector or country to sell and supply goods and services in a given market, in relation to the one of others
Tourism destination competitivensss
is the effort and achievement of long term profitability, above the average of the particular industry within which they operate as well as above alternative investment opportunities in other industries
successful organization should not only compete within their industry but also against other investment opportunities
sign of competition
destination have become increasingly competitive in their behavior
nations spend incredible amount of money on worldwide promotion
Tourism bureaus have mushroomed
competition in the development on infrastructure and tourism superstructure
many destinations are seeking solution to the challenge of
competitiveness
How a DMO can enhance competitiveness
serve as a focal point for the coordination of all industry activities
Provide leadership in the marketing of the destination
provide common services which enhance the quality of the visitor’s experience
specialized services to improve the effectiveness and the profitability of members of the DMO
Coordinate the collection and dissemination of all relevant information and research required by DMO members and the sector at large.
support the development and delivery of education and training programs.
BAK Basel
Bak basel economics is analyzing the performance of more than 100 alpine destination on a regular base.
Success is measured and compared internationally with “bak top Index” which is a key figure resulting from
development of demand,
occupancy
and hotel prices.
Bak top index determinant of competitiveness
GENERAL DETERMINANTS
- Firstclass and luxury hotels
- share of hotels (to second homes)
- size of hotels
- tourism intensity
- size of destination
WINTER SPECIFIC DETERMINANTS
- attractiveness of ski area
- sport and fun
- snowboard offer
- cross country skiing offer
- winter hiking offer
SUMMER SPECIFIC DETERMINANTS
- variety of offer
- sports and adventure
- wellness and pleasure
- hiking
- family and experience
Bak Top index result
winter sports destination with tendency to high occupancy rate and high earning power
good result of most traditional destination with higher prices and sufficient occupancy rate.
different regions
summer: Luzern and interlaken: international recognition
6 A’s framework to the analysis of tourism destinations
attraction
accessibility (transport system)
amenities (strutture ricreative)
available packages
activities (what customer do)
ancillary (ausiliario) services (banks, hospitals)
why is the competitiveness of each player at a destination interrelated and indistinguishable from another?
they consume destination as a comprehensive experience, without realizing that each element of the product are produced and managed by individual player
3 examples of de-marketing
Cambridge only wants overnights visitors. introduce special parking regulations
venice charges premium prices to reduce mass tourism
Mauritius does not allow charter flights, therefore promotes high expenditure tourism
why can destination not be managed and marketed as enterprises?
each destination has its unique needs and limitation as well as some particular geographical, environmental and sociocultural characteristics.
most destinations consist of numerous SMTE, which have own marketing strategies.
most important challenge: bring all individual partners together
Ritchie and Crouch model for destination competitivenss
competitiveness depends on
destination appeal (attractiveness)
destination management (marketing and managerial efforts)
destination organization (DMO capabilities, alliances)
destination information (internal management information system)
Destination efficiency (integrity of experience)
strategic management and marketing objective for destinations
long term prosperity of local people
Delight (trarre paicere) visitors by maximizing their satisfaction
maximize profitability of local event and maximize supplier effects
optimize tourism impact by engaging sustainability