Exam 2 Flashcards
• Sustainable tourism development and its principles.
o Dependent on area’s natural resources o Principles Improve quality of life (residents) High quality experience (visitors) Maintain environmental quality (residents and visitors)
• Potential tourism development impacts.
o Architecture pollution
o Ribbon or strip development and sprawl
o Infrastructure overload
o Traffic congestion
Private sector
Entrepreneurial
Risk takers (remember they are after a profit)
Operations management
nonprofit
CVBs Chambers of commerce Travel associations (e.g., Texas Travel Industry Association) Museums Cultural/historical associations
o Government
Catalyst
Regulator
Financial incentives (Figure 6.3, p. 148)
• Fiscal – income or other tax allowances (e.g., tax deferrals, eliminate or reduce tariffs, lower taxes)
• Direct and indirect – help financing projects (e.g., donate land, grants, loans, purchase shares in project)
• Tourism development analysis methods
o Pre-feasibility study
o Economic feasibility study
o Cost/benefit analysis
o Environmental impact analysis
o Pre-feasibility study
Justify economic feasibility study
Assess potential social, cultural, environmental impacts
Is project viable (e.g., does it fit with the community image?)
o Economic feasibility study
BIG QUESTION:
• Will project provide acceptable rate of return?
o Cost/benefit analysis
Assessing noncommercial projects
Society’s economic benefits
o Environmental impact analysis
Why? • Assess risks • Minimize impacts • Determine carrying capacity How? • Research • Identify appropriate management strategy(s) • Solicit public comment/participation
• Identify the reasons tourism marketing is different than marketing other products.
o Intangible and perishable
o Various services/facilities/attractions/events
o No or little control of product (DMOs rarely operate tourism businesses)
o Staff
o Intermediaries and distribution
o Elasticity and seasonality
• Understand what market segmentation is,
o What
Needs, wants, characteristics of visitors
Group potential visitors and then select target markets
Forward/ a priori segmentation
Backward segmentation
market segmentation characteristics
Measurable Accessible Substantial Defensible Durable Competitive Homogenous Compatible
the product life cycle (PLC)
Introduction
Growth
Maturity
Decline
o Objective positioning:
tailor services and/or product to develop image for target markets’ needs and wants
o Subjective positioning:
develop, change, or reinforce without changing products and/or services
• Four P’s of marketing
o Product
o Price
o Promotion
o Place (distribution)
• Additional 4 P’s
o Packaging Tourists use a variety of products and services o Programming Activities, events, other programs Wrap them into packages o People Proper training for all employees/hosts and hostesses Local residents Hospitable attitudes leads to satisfied guests leads to repeat visits and/or positive word of mouth advertising o Partnership o Cooperative/collaborative marketing o Strategic alliances (e.g., airlines) Frequent travel programs/awards o Two or more organizations or businesses pooling resources: Packaging – hotel and local attraction Joint marketing program(s)
• Understand what tourism promotion is and why it is done.
o Goal is to change behavior:
visitors book trips to your destination
Repeat visitors come back and perhaps buy the same or a different package, visit a different attraction, use a different service, etc.
• Identify types of promotions and how they are used at different stages of the product life cycle, as well as stages of the buying process.
o Informs – early stages (attention, comprehension)
o Persuades – intermediate stages (attitudes, intention)
o Reminds – repeat visitation, among reminding those already reached at earlier stages (purchase, adopt)
• Identify the process for implementing a promotional program.
o Select target market
o Objectives
o Budget
o Message idea and format
the types of activities that make up the promotional mix
Internet Advertising Personal selling Sales promotion Merchandising Public relations/publicity
o Message Idea
Analogy, association, symbolism Comparisons Fear Honest-twist Slice of life Testimonials Trickery and exaggeration
• Identify and explain ways to measure and evaluate tourism promotions.
o Tracking studies o Cost-comparison o Concept or image testing o Conversion studies o Inquiry tracking o Pre-testing promotions o Post-testing promotions o Show audits (consumer, trade, etc)
• Understand why the distribution mix of tourism is unique.
o Supply and demand; tourism destinations and visitors
o Intangible
o Perishable
• Understand the relationships between distribution and the marketing mix.
o Distribution is part of the marketing mix
o Direct: Supplier, DMO, etc sells to visitor
o Indirect: Sale through a travel trade intermediary
o Vertical integration
Distribution channels entirely or partly owned by one organization (e.g., own hotels, restaurants attractions, etc)
Direct control of information
o Horizontal integration
Organization owns like businesses in the distribution channel
o Classification
Consensus – several businesses
Collaboration, partnerships, etc
Vertically integrated – single organization in control of the channels
Vertically coordinated – power or control is contractual (e.g., franchise – restaurants, hotels, etc)
• Understand the different strategies for distribution.
o How you make service/product available
o Intensive – use all or many intermediaries and selling options
o Exclusive – have travel agents only sell a carrier, supplier, etc. services
o Selective – in the middle of intensive and exclusive
o Market coverage
o Costs
o Position/image
o Travel trade intermediaries
o Destination characteristics
o Economic concentration
