Slide Nr. 1 Tourism Facilities Management André Kretzschmar University of Applied Sciences...

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Tourism Facilities Management

André Kretzschmar

University of Applied Sciences Stralsund

Leisure and Tourism Management

WS 2008/2009

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Basics

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Attractions

Part One \ defining attractions \ ...

• Play a vital part inencouraging visitors to a region;

• Without attractions there would bea limited need for other tourism services;

• Some argue that tourism would not exist if it were not for attractions.

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Attraction defined

A designated permanent resource

which is controlled and managed

for the enjoyment, amusement,

entertainment, and education of

the visiting public.

(Middleton, 1988)


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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


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Terminology and Interrelations

• visitor attractions and tourist attractions

• attractions and destinations

• attractions, support services and facilities

• resort complexes

• attractions and activities


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Classification of visitor attractions

• Ownership

• Primary and secondary attractions

• Catchment area

• Visitor numbers

• Location

• Size

• Target markets

• Benefits sought


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Ownership of Attractions

Sector(type of ownership)

Main types of attractions owned

Main motives for ownership an operation

Public:

- government,

- local authorities,

- nationalised

industries.

Museums, galleries

Ancient monuments

Archaeological sites

Historic buildings

Country parks

Forests

Main priorityConservationOther priorities

Education, public access, increased leisure opportunities for the community, catalyst for tourism development, income, visitor management

Private:

- Commercial

organisations.

Theme parks

Zoos

Marinas

Main priorityProfitOther priorities

Entertainment, max. visitor numbers, market share, exploit growth markets

Voluntary:

- Trusts & charities.Historic buildings

Heritage centres

Steam railways

Main priorityConservation via income from visitorsOther prioritiesEducation, visitor management


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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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Development

Feasibility Study

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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

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• 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

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• 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

Break-even point

Number of visits

Cos

ts

0

Profit

Variable costs

Fixed Costs

Part Two \ Development process \ Feasibility study

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Development

Business Planning

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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

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What does planning encompass?

• Business is primarily about one thing only, determining what it is the consumer wantsand providing it at a profit.

• Strategic positioning;

• Market research;

• Financials;

• Marketing strategy;

• Human resource management;

• Operational planning.

!Part Two \ Development process \ Business Planning

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Management

Marketing Planning

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Visitor attractions as service products

Part Three \ The marketing concept

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??

1.

2.

3.

4.

5.

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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

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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

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SWOT analysis

Part Three \ Strategic marketing planning \ Where are we now?

Strengths Weaknesses

Opportunities Threats

internal factors

within control

(current situation)

external factors

outside control

(market direction)

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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 inoff-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

- ….

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• Where customers perceive you to be in the marketplace

• 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!

Product positioning


Exciting

Boring

Exp

en

sive

Ine

xpe

nsi

ve

Exciting

Boring

Exp

en

sive

Ine

xpe

nsi

ve

Theme Park

( )

Competitor analysisPositioning disparity

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Management

Implementing Marketing Strategies

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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?

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Marketing Mix

Product

PricePromotion

Place

• Product levels (Kotler)• Designed characteristics

• Positioning

• Service components• Image / Reputation

• Packaging• Branding• Quality

• List price• Discounts

• Concessions

• Value for money• Cost of travelling

• Methods of payment• Price / Quality trade off

• Literature• Advertising

• Direct marketing

• Press and public relations

• Sponsorship

• Sales promotion• Personal selling

• Signposting

• Booking agencies

• Place of purchase• Distribution

• Intermediaries

• Pre-booking• Pre-purchase

• Ticket systems


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The seven Ps

• People – staff in terms of:training, appearance, behaviour, customer contact, …

• Physical evidence – environmentlayout, noise, cleanliness, furnishing, …

• Process – corporate policies and proceduresemployee empowerment, customer involvement, …

• Extension of the ‘product’ category !but emphasizes the importance of those three factorsfor service products


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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?

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Management

Human Resource …

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• 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

Human Resource Management

Part Three \ Human Resource Management

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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

Problems of HRM at visitor attractions

Part Three \ Human Resource Management \ Problems

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Management

Quality …

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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

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Quality management systems at attractions

Part Three \ Quality management

• 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

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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 disturbancesby providing a trouble-free sequence of events

• Aims to minimize negative environmental andsocio-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

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Visitor management


Humanresources

Legalconditions

Financialconditions

HRMOperational

managementMarketingactivities

VisitorManagement

Managementobjectives

Visitorexpectations

Performance

Visitorsatisfaction

Conservation:

- environment- and assets

Minimizenegative impact

Maximizequality of

product/service

Experiencewithout

disturbances

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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


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