Slide Nr. 1 Destination Management Lecture 2 University of Applied Sciences Stralsund Leisure and...

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Destination Management

Lecture 2

University of Applied Sciences Stralsund

Leisure and Tourism Management

WS 2009/2010

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Summary of the last lecture

• Attractions in general- encourage visitors to region, no tourism without ~, …

• Attractions defined- a designated permanent resource …

• Typology of attractions- natural, man made, special events

• Terms and interrelations- attractions and destinations, …

• Classification of attractions- catchment area, size, ownership, …

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still Part One

Sets the context

by defining attractions, looking at their role in tourism, examining the attraction product and market,

and outlining the business environment of attractions

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The Role of Attractions in Tourism

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Reasons for growth in visitor attractions

• Increased disposable income;

• More leisure time;

• Advances in transport;

• Education;

• Media images;

• Increased marketing.

Part One \ The role ...

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What are some of the trends effecting attractions?

• Ageing population;

• Desire for an educational experience;

• Cultural and historic preservation;

• Other Trends:

- Changing technology (miniaturisation, computer effects);

- “Now” Generation (instant gratification);

- Disposable society;

- Changing sociographics (changing traditional family

structures.)

Part One \ The role ...

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History of attractions

• Most initially used for other purposes;

• Religious shrines motivated travel during medieval times;

• Growing cultural interest during the Renaissance;

• Grand Tour in 18th & 19th Century;

• 20th Century saw the beginning of created attractions

and events.

Part One \ The role ... \ History of attractions

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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

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• Transport networks make attractions physically accessible

• Road links are by far the most important type

• Attractions often lead to the development of new public

transportation services

• Good on-site transport networks encourage visitors to use

as many attractions as possible

• Innovative on-site transport modes

are often recognized as an

attraction in their own right

Transport


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Tour operation

• Attractions are vitally important for packaging holidays

• Excursions, taken away from the base destination,

are a valuable source of income for tour operators;

- a number of attraction within a short range desirable

- attractions should be different from the main attraction

- off-peak season depends on availability of sufficient attr.

• Dynamic Packaging ?!

- driving forces: low cost carriers, broadband internet

- new travel agents like expedia and lastminute


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Economic impact of attractions

• Positive

- provide government with income by:- taxes paid by employees

- VAT paid on bought items

- direct income from governmental owned attractions

- provide directly and indirectly jobs

- foreign currency from overseas visitors (major attractions)

• Negative

- Jobs are often poorly paid

- Many local authority owned attractions lose money!

- Opportunity costs when losing money

Part One \ The role ... \ The impact of attractions

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Environmental impact of attractions

• Natural and non-tourist purpose man made attractions:

Visitors often cause problems on the attraction itself

• Tourist purpose man made attractions and special events:

Visitors often cause problems on the environment

• Pollution, destruction, often high consumption of land,

water and energy

• Minimizing environmental impact is an important

managerial task (Reinvesting Income …)

• Income from attractions is sometimes the only way to

conserve / protect environment


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Sociocultural impact of attractions

• Huge numbers of visitors can ruin the atmosphere

• Conflicts between visitors and ‘normal users’ of non-

tourist purpose attractions (Churches, cathedrals, beaches …)

• The character of religious and traditional events may

suffer from too many spectators

• Less reflected needs and desires of local people(e.g. Sea Resort “Heiligendamm”)

• Improve health of people by providing recreation

• Kind of compensation to stressful jobs and daily life


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The Attraction Product

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What is a product?

Part One \ The attraction product

A product is anything that can be offered to a market for attention, acquisition, use, or consumption

that might satisfy a want or a need.

It includes physical objects, services, persons, places, organisations, and ideas.

Kotler, 1994

A product is an offering of an business entityas it is perceived by both present and potential customers.

It is a bundle of benefits designed to satisfy the needs and wants, and to solve the problems of, specified target markets.

A product is composed of both tangible and intangible elements: it may be as concrete as a chair or dinner plate

or abstract as ‚a feeling‘.

The utility derives from what it does for the customer.

Lewis and Chambers, 1989

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Roller coaster

Wooden constr.

Seats

Passengers

Screams

Fear

Excitement

Tangible and intangible elements


Cathedral

Chairs

Burning candles

Visitors

Silence

Atmosphere

Spiritual value

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The visitor attraction as a service product


• The staff is part of the product itself

• Customers are involved in the production process

• Service products are not standardized

• The product is perishable and cannot be stored

• There is no tangible product to carry home

• The surrounding of the production process is a feature of

the service

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The three levels of the attraction product


Excitementand/or

atmosphere

Core ProductRange of rides

and on-siteattractions

Sharing the parkwith other people

Brand namesuch as

Disneyland,Center Parks

Tangible Product

Quality ofservice

Safety

Augmented Product Ancilliary servicessuch as

catering and retailing

Services for visitorswith special needs

Proceduresfor handlingcomplaints

Opening TimeWeatherconditions

Car parking

(After Kotler, 1994)

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Attractions and the product life-cycle


Introduction Growth Maturity Decline

Time

Usageor

salesvolume

(After Kotler 1994)

• Public and voluntary operated attractions may never ‘die’!

• Decline phase for the Pyramids?! Competitors?!

• Relaunch of natural attractions?!

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The Visitor Attraction Market

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The visitor attraction market

Part One \ The visitor attraction market

• Success of an attraction depends on the market respond

• There is no single attraction market to be defined,

identified and measured

• Market research is weak as:

- private sector dominates ownership of attractions

- we know little why people visit attractions at all

- many attractions lack in sufficient monitoring systems

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Market segmentation


• Geographical

- … where the visitors live / come from

• Demographics

- age, sex, race …

• Psychographic

- attitudes and opinion coming from social class, lifestyle…

• Behavioristic

- relationship with the product, benefits sought

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Market segmentation, e.g. demographic / age


Child New experiences; Other children to play with.Paternal guidance and support

Teenager New experiences, Excitement, Status, More independencefrom parents, other teenagers, active participation

Young adult New experiences, freedom of action, other young adults,

active participation

Young couple New experiences, romance, solitude

Young couple with baby facilities for babies, convinience for people with babies

Growing family Economy – e.g. family ticket, something for all the family

Empty nesters Chance to learn something, more passive participation

Elderly Whatching rather than doing, economy, company of other people, easy accessibility for people with mobility problems

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The Business Environment

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The business environment and visitor attractions

Part One \ The business environment

• Macro - environment

- general societal forces on a national or international scale

- strong influence but not controlled by organization

- P E S T (PEST - Analysis)

• Micro – environment

- 5 main components: organisational structure, suppliers,

marketing intermediaries, customers, competitors,

- can be influenced or controlled by organization

• … a complex web, changing constantly over time

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Macro-environment


• Political factors- cover all actions of governmental bodies

• Ecomnomic factors- influencing the attr. Market > disposable income

- influencing attr. Product > inflation, interest rates

• Sociocultural factors- demographic and cultural trends, consumer behavior

• Technological factors- influence product, management and competition

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Micro-environment


• Organization- management structure and style, company culture,

arrangement of functions

• Suppliers- F&B, Souvenirs, services for running the attraction

• Marketing intermediaries- tourist information, tour operators, travel writers

• Customers- existing customers are potential marketing intermediaries

• Competitors- difficult to identify competitors; but once identified to be evaluated:

- main product, targeted market, strength & weaknesses, future plans

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Macro environment – two examples


Factor in business environment Major theme park Small local authority museum

Political - Health and Safety law- Legislation on the rights of the part time workers

- Laws affecting local government- Control on local authority expenditure

Economic - State of the economy- Interest rates due to the need for constant new product development

- If a charge is made, the state of the economy,- otherwise of little importance

Sociocultural - Percentage of the population in the younger age group- The changing stucture of the family

- Percentage of the population in the middle age group and in the social classes A and B

Technological - New types of rides- Virtual reality- Management Information Systems

- Need to keep up with the latest methods of interpretation

Natural - Weather- as most are open air, bad weather reduces visitor numbers

- Weather- as most are under cover, bad weather is usually beneficial

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Micro environment – two examples


Factor in business environment Major theme park Small local authority museum

Organisation - Usually interpreneural- Mainly seasonal and part time staff

- Often bureaucratic- Professional culture- Many permanent full-time staff

Suppliers - The rides and on-site attractions,

catering products, souvenirs,

- Artefacts, often from the public- Limited catering and souvenirs- Staff training through museum professional bodies

Marketing intermediaries

- Tourist Information Centers, hotels which display literature, media, tour operators, existing customers

- Tourist Information Centers, existing customers

Customers - Significant brand loyalty, but few visits per annum- Regional & national catchment area

- Often heavy dependence on regular repeat visitors

Competitors - Other theme parks, amusement parks and arcades- Other attractions aimed at social Class C and D

- Other attractions targeting: - social Class A and B, - visitors in the 25-60 age group, - educational groups.

Slide Nr. 1 Destination Management Lecture 2 University of Applied Sciences Stralsund Leisure and...

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