The Evolution of a Tourism Delivery System: Marketing Garden Clusters on Vancouver Island

Tourism Delivery System Marketing Cluster

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The Evolution of a Tourism Delivery System:

Marketing Garden Clusters on Vancouver Island

Royal Roads University

Dustin Bodnaryk, Ray Freeman, Barbara E. Smith

July 14, 2010


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Table of Contents

Introduction………………………….……………………………………………...................3

Cluster Constructs and Collaborative Marketing…....................................................................4

Stakeholder Partnerships….........................................................................................................6

Structure of Clusters…………………………………………………………...........................10

Collaboration…………………………………………………………......................................11

Regional Development Challenges…………….………………………………………………14

Product Differentiation…...........................................................................................................17

Market Segmentation…………………………….….………………………………………....18

Understanding the Market…………………….….…………………………………………....20

The Internet and Technology…..................................................................................................21

Innovation……………….…………………………………………………………………......22

Destination Management Systems…………………………………………………………......25

Media Relations………………………………………………..................................................27

Leadership and Clusters………………………………………………......................................27

Hatley Park Marketing Strategy……………………………………….....................................28

Recommendations......................................................................................................................30

Limitations and Considerations..................................................................................................32

Conclusion………………………….…………………………………………….....................32

References………………………….…………………………………………….....................33


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Introduction

This paper proposes to support the development of an effective tourism delivery system

with a focus on a marketing strategy, which leverages, enhances and delivers the identity of

Hatley Park National Historic Site (HP NHS, n.d.a.) to desired tourism market niche consumers.

Through collaboration of competitive and complementary businesses and organizations

including Hatley Park, the Vancouver Island regional cluster of gardens and supporting

businesses form a single tourism product, “The Garden Trail” to market globally. Using cluster

theory as a framework (Porter, 1998), this paper examines the collaborative structure, processes

and success factors of garden clusters on Vancouver Island conducive to globally marketing

competitive tourism products. The Hatley Park identity has been created through collaboration

with stakeholder partners, including: Royal Roads University (RRU), Tourism Association of

Vancouver Island (TAVI), the British Columbia Ministry of Tourism, Culture and the Arts

(MTCA), the Canadian Tourism Commission (CTC), Parks Canada, and other supply chain

intermediaries and partners.

The primary basis for a marketing strategy is to identify and highlight the unique array of

destination amenities offered in alignment with evolving trends towards supporting positive

experiential tourism opportunities (Arsenault, 2005, p. 2; Oh et al., 2007, p. 119). Utilizing a

disciplined marketing process, Hatley Park National Historic Site in conjunction with

stakeholder partners may cost-effectively enhance the reach of their marketing matrix strategy by

leveraging emerging technology trends and resources (Harris, 1995, p. 613; Ritchie & Crouch,

2003, p. 173). While striving to effectively identify, target, and reach appropriate and desirable

prospective consumer market segments through a disciplined and dynamic marketing strategy,


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this approach presents the opportunity for successful outcomes if the customer experience is

incorporated into the plan (Hanlan, Fuller, and Wilde, 2006, p. 7). This paper asks: What is the

most appropriate and effective tourism delivery system for Hatley Park National Historic Site, in

order to identify, target, and reach appropriate and desirable prospective consumer market

segments (Hanlan, Fuller, & Wilde, 2006, p. 7).

In efforts to further investigate and understand the concept of a tourism delivery system

in the area of marketing a cluster product to an international market, this paper examines the

evolution of a proposed tourism delivery system through a cluster framework. “A tourism

delivery system can be thought as a collection of components that work together to produce an

outcome that is economically worthwhile from the perspective of the component stakeholders”

(M. Conlin, personal communication, April/May, 2010). Various existing models were

considered and are included as the authors' endeavor to conceptually create a model representing

the evolution of the tourism delivery system. The complexity of the model is revealed in the

following discussions on product development, stakeholder partnerships, cluster concepts,

regional development challenges, technology, innovation, the internet, destination management

systems, media relations, development and structure of clusters, collaboration and leadership.

Concluding comments highlight recommendations to Hatley Castle National Historic Site in

light of the research observations.

Cluster Constructs and Collaborative Marketing

With increasing interest in experiential tourism opportunities (Arsenault, 2005, p. 2; Oh,

Fiore, and Jeoung, 2007, p. 119) Hatley Park National Historic Site is well positioned to develop

and present this tourism operation as a distinctive tourism destination in an increasingly


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competitive global marketplace (Ritchie & Crouch, 2003, p. 11). Through a well-designed

tourism delivery system plan (Scott, Baggio, & Cooper, 2008, pp. 72-73) in collaboration with

strategic stakeholder partnerships (Tourism Vancouver Island, 2009); supported by a disciplined

strategic marketing process (Harris, 1995, p. 613), Hatley Park stakeholder partners can take

steps to ensure that they may more effectively meet target tourism visitors’ expectations and

needs while fulfilling collaborative strategic interests.

Hawkins’ asserted (2002, p. 7), it may be considered suitable to apply a structured market

analysis framework towards developing a marketing strategy. This approach draws upon

Porter’s (1998) description of the availability of local factor conditions (in this case, the

amenities presented at Hatley Park) and reinforces the need to effectively address consumer

demand conditions; those being, the encouragement of local competitive innovation derived from

high consumer expectations. In order to take advantage of competitive innovation, Hawkins

(2002, p. 4) suggests that planners consider the nature of applicable consumer demand factors,

specifically: volume and growth of demand, source and caliber of markets, as well as tourist

behaviour and levels of sophistication.

Porter (1998) described clustering as, “geographic concentrations of interconnected

companies and institutions in a particular field” (p. 78) and as “an alternative way of organizing

the value chain” (p. 80). Porter argued that clusters have a major impact on competition by

encouraging further innovation, growth, and productivity of the collective group of companies,

“a cluster allows each member to benefit as if it had great scale or as if it had joined with others

formally – without requiring it to sacrifice its flexibility” (p. 80). Hawkins (2002) defined a

competitive cluster as an organized set of strategic “activities and services” delivered through a


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supply chain of participating stakeholders; including, the communities, government, destination

marketing/management organizations (DMO’s), intermediaries, and other associated strategic

partners (p. 1).

This competitive cluster framework and strategy creates a comparative advantage through

promotion of the destination’s amenities (Hawkins 2002, p.1). The development of a marketing

strategy, delivered through a structured tourism delivery system model, based upon a competitive

cluster framework as suggested by Hawkins’ model and Porters’ theory, may be effective if

created in alignment with the vision statement and key objectives designed to build tourism

capacity through collaboration with strategic partners at the destination, in the region and along

the tourism delivery system value chain. Subsequently, a marketing strategy may be developed

with a view towards considering a concise set of technical components focusing on attracting the

interests of tourists through market analysis, competitive analysis, market segmentation, and

positioning strategy (Harris, 1995, p. 607).

Stakeholder Partnerships

Many tourism operators do not clearly understand the benefits of cooperative marketing

efforts with local “competitors” or “conglomerate allies” within their own region towards

building capacity and enhancing the competitiveness within a region against other destinations

on a more global scale. Destination planners, DMOs, and stakeholders need to encourage a

process, which facilitates the balanced requirements of all parties in order to achieve collective

success (Buhalis & Spada, 2000, pp. 42, 52-54, 56). According to Lovecock & Boyd (2006, p.

144), Timothy (2001, p. 158) argued a collaborative approach for multiple stakeholder and multi-

jurisdictional destination planning encourages sustainable efficiency, integration and stability


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through concerted promotional and marketing efforts. Furthermore, Lovecock & Boyd (2006, p.

146) cited Oliver (1990) who identifies a number of ‘critical contingencies’ for inter-

organizational relationship formation:

Figure 1. Incentives for Relationship Formation for Inter-Organization Relationships

Source: Oliver (1990, p. 146).

Reciprocity: Organizations seek to facilitate exchange of resources;

Efficiency: Organizations seek to reduce the cost of service delivery;

Stability: Organizations seek to reduce uncertainty and share risks;

Necessity: Where the relationship is mandated by external force;

Legitimacy: Where the organizations concerned seek to demonstrate the norms of

cooperation.


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The evolution of cluster and stakeholder constructs applicable to “The Garden Trail” on

Vancouver Island may be described as follows:

Tourism Delivery System Evolution for Marketing Garden Clusters on Vancouver Island

Figure 2. Localization of Vancouver Island tourism suppliers

Source: Bodnaryk, D., Freeman, R., Smith, B.E. (2010).

This figure depicts cluster stakeholders prior to the development of “The Garden Trail”

cluster as each independently markets to a broad base of international markets. The inner circle

and outer circle represents the competitive space within which stakeholders operate and the

various sizes represent the degree of commitment to and involvement with international

marketing efforts.


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Figure 3. Cluster development of Vancouver Island tourism suppliers.


This figure highlights the developing cluster of stakeholders creating a single tourism

product, “The Garden Trail”, targeting desirable niche consumers within the United Kingdom

(U.K.) market. A central leadership role for marketing strategy development and delivery to the

supply chain is undertaken by the Tourism Association of Vancouver Island. The overlapping

stakeholders and size differences reflect a “learning community” interconnecting and committing

collective resources towards developing a shared a common vision (Morrison, Lynch & Johns,

2004, p. 203).


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Figure 4. Tourism Delivery System for International Marketing of Clustered Product


This figure showcases the interconnectedness of horizontal, vertical and diagonal cluster

stakeholders focused on key distribution channels and more specific U.K. market channels

within the desired international target marketplace.

Structure of Clusters

Michael (2003) described the “forms of clustering” as “horizontal clustering, diagonal

clustering and vertical clustering” all supporting the optimal cluster of firms (p. 137).

Accordingly, the horizontal clusters are like-minded businesses and competitors conducting


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business in the same geographic location seeking a shared customer. The vertical clusters are the

traditional value chain businesses which provide goods and services to the optimal cluster of

firms. And finally, the diagonal clustering refers to complementary or symbiotic firms which are

distinctive businesses that provide additional value and support to the main cluster (pp. 138-139).

It was suggested by Bradenburger and Nalebuff (1997, as cited by Michael, 2003) that diagonal

clustering firms add value to the tourism visitor and therefore can positively impact their

decision to purchase the tourism product. The salient points made by Michael (2003) clearly

indicate that tourism growth is more about forming strategic alliances and clusters with like-

minded businesses in the same geographic area than it is about competition (p. 138).

Findings from case studies conducted by Morrison, Lynch and Johns (2004) indicated

there is a significant role undertaken by a “hub organization” in the initiation and organizational

structuring of the network (p. 202). In the case of “The Garden Trail”, it is the Tourism

Association of Vancouver Island that is taking the lead role in leadership and organization

specific to cluster marketing initiatives. Morrison et al. confirmed that the core of the network is

the knowledge and information exchange amongst members and the “glue” is the common vision

and purpose of the group. Morrison et al. further advocated a “sense of community” which can

result from fully functioning networks leading to a concept of “learning communities”: “A

learning community is concerned with the concept of networks of networks, meshing and

interconnecting diagonal, horizontal and vertical organizational types and configurations as

appropriate” (p. 203) to build and enhance collective capacity.

Collaboration

Strategic alliances are purposeful arrangements between two or more independent


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organizations that form part of, or are consistent with the overall strategy, and contribute to the

achievement of the objectives that are mutually beneficial to the parties involved. Organizations

and businesses enter into collaborative relationship with different motivations ranging from

social to economic to strategic (Youcheng & Zheng, 2007, p.78). In the example of Hatley Park

National Historic Site, participating in a strategic alliance within a cluster and bundling services

together to form a single product such as the “The Garden Trail” product allows smaller firms to

tap economics of scale and scope. “Firms add value to the cluster’s activities by integrating or

bundling complementary services into a single product for sale – in effect, allowing firms to

diversity their activities to meet the needs of a target group of consumers” (Poon, 1994, p. 224,

as cited by Michael, 2003, p. 139). As the product cluster grows, each member of the vertical,

diagonal and horizontal segments of the cluster benefits from their involvement through

accessing specialized market information, specialized labour, infrastructure, lower costs, greater

capacity and the opportunity to increase visitations. The benefits of collaboration may be

significant and far-reaching to the growth of business and the development of a community

(Michael, 2003, p. 140).

As an example, Fyall, Leask and Garrod (2001) informed that Scottish tourism attractions

welcomed the opportunity to collaborate jointly. Not only were collective branding, theming and

packaging seen as benefits to interorganizational collaboration but also necessary for survival in

a highly competitive environment (p. 212). Fyall et al. advocated that collaboration amongst

Scottish attractions has many advantages including sharing of resources, attainment of common

strategic goals and “maximizing the appeal of the generic product” (p. 217). Other benefits of

collaboration as noted by Fyall et al. included the mutual benefit of pooling resources (staff,

time, finance, training and expertise), reduced individual risks, increased business profile, and


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increase product exposure through joint-marketing activities accessing many different

distribution channels (p. 217). A study by Kanter (1994, as cited by Fyall, Leask & Garrod,

2001, pp. 224-226) highlighted 37 companies and their partners from 11 regions of the world

confirmed five underlying principles for successful collaboration:

Figure 5. Principles for successful collaboration

Source: Fyall, Leask & Garrod (2001, pp. 224-226).

According to Kanter (1994, as cited by Fyall, Leask & Garrod, 2001, p 223) “successful

collaboration is by no means a matter of chance; it tends to be associated with a number of

features specific to the partners and the market environment in which they operate.” Moreso,

Kanter (1994) proposed individual partners in the group need to adopt a holistic attitude toward

achieving the group’s shared vision (p. 223).

Similarly, five success factors of tourism networks are defined by Morrison, Lynch and

Johns (2004) as: having clearly identified collective objectives and goals incorporating the

regional and national priorities; having key leaders who recognize the benefits of exchanging

knowledge and information across all levels; having an organizational structure that includes all

stakeholders and public sector organizations; having adequate financial, human and physical

o partners’ strategic goals should converge while their competitive goals

diverge

o the relative size and market power of partners should be modest compared

with industry leaders

o each partner should believe that it can learn from the others and at the same

time limit access to proprietary skills;

o the collaborative alliance should be regarded as a relationship rather than a

mere exchange

o there should be an overall consensus as to the general ‘mission’ of the

collaborative alliance


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resources; motivating members with economic, social and psychological benefits and supporting

interorganizational learning through exchange of ideas and knowledge (p. 201).

Regional Development Challenges

Hawkins (2002, p. 4) suggested that undertaking a marketplace analysis with a focus on

regional collective factor and demand conditions can build the capacity of the competitive

cluster, resulting in lower operating costs and improved product offerings as well as facilitating a

quality experience for tourists and competitive advantage for the cluster. This approach reveals

the following primary issues and challenges for the Vancouver Island Region namely:

Figure 6. Primary issues and challenges for the Vancouver Island Region

Source: Tourism Vancouver Island (2009, pp. 9-11).

Furthermore, using the Vancouver Island Visitor Exit Survey (Tourism Vancouver Island, 2008),

data was acquired from intercept interviews querying visitors on: their geographic origin,

demographics, primary travel motivators, and subsequent trip satisfaction. Overlaying survey

1. Challenges to access, including, for example, immigration control requirement for US

travelers to carry passports.

2. Uncertainty of fuel prices, and the US economy.

3. Limited new product development within the Region may be limiting yield.

4. Fragmentation of Vancouver Island’s tourism industry and instability in some community

DMOs.

5. Transportation costs and access constraints limit market growth.

6. Labour market challenges limit industry growth.

7. Limited awareness of the value and importance of tourism in some Vancouver Island

communities.


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results with the community tourism plan issues and challenges allows planners to confirm target

group definition, identify gaps in the plan, reveal market trends/opportunities, and adjust

strategic components validated by stakeholder consultation (Harris, 1995, p. 605). To

subsequently ensure effectiveness of the marketing strategy, Tourism Vancouver Island

“(created) a research program in cooperation with the private sector to measure growth and the

effectiveness of marketing initiatives” (Tourism Vancouver Island, 2009, p. 13).

In the following figure, Key Factors in Collaborative Regional Tourism Destination,

(Naipaul, Youcheng, & Okumus, 2009) outlined the areas of; (1) facilitating factors, (2) potential

outcomes, (3) motivations for collaboration, and finally (4) inhibitors for collaboration, (p. 469):


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Figure 7: Key Factors in Collaborative Regional Tourism Destination

Source: Naipaul, Youcheng, & Okumus (2009, p. 469).

Supporting these key factors, Wilson, Fesenmaier, Fesenmaier, and van Es (2001, p. 151) argued

that “although the community and partnership approach may be an effective way to develop and

promote tourism, creating the necessary inter-community cooperation and collaboration is a

complex and difficult process.” Previous academics provide literature on the challenges of

implementation of collaborative alliances stemming from; (1) the fragmented nature of

individual interests of tourism stakeholders within a region; (2) the fact that no single agency can

control and deliver a rich combination of tourism product; and (3) and that a collaborative

strategy at a regional, provincial, national, or international level requires a great deal of

coordination, communication, and building consensus, (Jamal & Getz, 1995, p.186).

Facilitating Factors

-Independent communities with common operating philosphy

Geographic Structure;good personal relationship and constant

communication;Complimentary Products;Fair Share of Benefits and

responsibiities

Outcomes of Collaboration

-A formal single marketing program;wider market reach

Cost efficiency;Shared economic impact to regions

Motives for Collaboration

-Enhancing tourism product; leveraging on each others unique tourism products; cost

reduction and efficiency.

Inhibiting Factors

(1) From Individual Communities/DMO's

-Different priorities; different marketing directions; lack of actions and focus; constraints of human and financial

resources

(2) From Stakeholders

-Perceived risk; additional labour and resource requirment

Collaborative Regional Tourism

Destinations


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Product Differentiation

Hatley Park National Historic Site offers a “Superb Canadian example of an Edwardian

park that remains practically intact” (Parks Canada, 2009, p. 110); however, undertaking a

competitive analysis is necessary to identify competitive product offerings, reveal opportunities

for innovation, and support creation of an inimitable market niche for the destination (Gu, 2006,

p. 382). Highlighting the uniqueness of a tourism destination is a strategy that is critical to the

destination’s ability to build community capacity, to the benefit of stakeholder partners (p. 383).

Analysis of competitive destinations may identify best-practices and highlight opportunities to

showcase unique characteristics of destinations enabling a destination to develop a more

effective target market strategy (Ritchie & Crouch, 2003, p. 27). Vancouver Island, as a whole,

provides travelers with many of the attributes desired by major demographic markets (Ritchie &

Crouch, 2003, p. 20). For a number of years running, Vancouver Island has been chosen by

Condé Nast Traveler readers as one of the top Islands in North America, often topping the list

(Concierge.com, 2009).

Putting competitive advantage into perspective for Hatley Park National Historic Site,

Ritchie and Crouch (2003, p. 67) referred to Porter (1980, 1990) informing that destinations

which compete in localized markets may also cooperate when promoting the greater region as a

combined destination when attracting visitors from outside the region. In this case, Hatley Park

National Historic Site is well positioned to collaborate with the local and regional DMO’s,

competitors, adjacent communities as well as the BC Ministry of Tourism, Culture and the Arts,

and the Canadian Tourism Commission to participate in the combined cumulative and

collaborative promotion of all destinations, communities and regions on Vancouver Island. As a

combined region, long-haul market tourists may view Vancouver Island as one destination


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(Ritchie & Crouch, 2003, pp. 67, 108), therefore, it would appear logical for local competitors to

combine efforts to promote the entire region as one destination.

Market Segmentation

Kotler, Brown, Adam and Armstrong (Hanlan et al., 2006, p. 7), suggested that the

effectiveness of using a market segmentation approach to determine appropriate and desirable

niche target market consumers may be enhanced using methodologies which are measurable, are

accessible, are actionable, and differentiable. Despite the availability of a number of market

segmentation approaches, Hanlan et al., (2006, p. 24) stated that benefit segmentation is the

preferred approach due to travelers desire to derive positive benefits sought (Hanlan et al., 2006,

p. 12) from experiential travel (Arsenault, 2005, p. 2; Oh et al., 2007, p. 119). Furthermore, this

approach may provide greater insights into traveler motivations when combined with the more

common market segmentation methodologies, such as, demographic and geographic profiling,

especially when applied to a marketing matrix designed to effectively connect with identified

market segments.

Execution of a marketing strategy first requires an understanding of market analysis,

competitive analysis, market segmentation, and product positioning strategy factors. In addition,

Snepenger, Snepenger, Uysal, and Fesenmaier (1993, p. 23) suggested that destinations consider

selected target segments in relation to the resources available to develop a successful marketing

program. Ritchie and Crouch (2003, p. 173) further advised that the selection and delivery of the

marketing mix should consider temporal aspects to determine when best to engage in select

advertising tactics, such as including consideration for seasonal travel influences. Reinforcing

this, Harris (2009) demonstrated that temporal aspects are highly dependent upon the level of


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awareness of the destination and recommended developing a purchase cycle map to support

planning for delivery of marketing and promotional tactics.

Figure 8. Consumer Purchase Cycle

Consumer Purchase Cycle

Source: R. Harris (personal communications, September/October, 2009).

In the case of Hatley Park National Historic Site, a primary tactic would be to focus on

creating initial awareness of the destination and the region for specific identified target niche

consumers, rather than placing more emphasis on branding with an increased depth of

information until the consumer has advanced further in the consumer purchase cycle (Harris,

2009). In order to gain the best market penetration of marketing efforts cost-effectively, Ritchie

and Crouch (2003, p. 173) suggested that marketing efforts could be further enhanced by


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considering the influence of technology on traditional tourism distribution channels as well as

technological influences on consumer decision-making processes. Keeping in mind the

consumers’ desire to engage in a positive and beneficial travel experience, destination marketing

planners need to be cognizant of both technology and customer experience outcomes (Ritchie &

Crouch, 2003, p. 173).

Understanding the Market

For Hatley Park National Historic Site and the overall Vancouver Island “Garden Trail”

program (Tourism Vancouver Island, 2010a), the process of staying in tune with consumers, and

gaining insights into why they purchase the product, and how they purchase the product will

assist in future decision making and enables more effective marketing outcomes for the

Destination Marketing Organization (DMO) and the stakeholder, (Pike, 2008, p.134). According

to the Vancouver Island 2010 marketing plan, (Tourism Vancouver Island, 2010b) the

organization commits 82% or 1.47 million dollars towards the touring market which includes

garden tours, historic sites, and museum visitors. In a recent exit survey by Tourism Victoria in

partnership with the University of Victoria (Tourism Victoria, 2010), the average expenditure per

party per day on Vancouver Island was $247 in 2009, (p.4). In terms of trip planning

information it was shown that many visitors, approximately 30%, relied on friends and family for

trip planning information. A majority used the Internet in some way, while newsprint

advertising was the least used source of information, (p.10). In relation to the specific segment

of visitors to paid attractions and the touring market, it showed that 37.3 percent of the surveyors

toured historical sites with 30.6 percent visiting Butchart Gardens, the premier garden attraction

in Victoria and on Vancouver Island. Analysis of market research assists in identifying

consumer preferences and behaviours, therefore assisting planners in determining appropriate


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target niche market consumers and their preferences.

Target niche market consumers from the United Kingdom which the Canadian Tourism

Commission has identified as most desirable for Canadian Tourism Operators, fall within the

categories depicted in the following figure. Analysis of the characteristics and preferences

described in the CTC “Explorer Quotient” system appears to align well with local factor

conditions available at Hatley Park National Historic Site. HP NHS may find additional research

resources available from the CTC, MTCA, and TAVI available to further analyze potential niche

target market data.

Figure 9. Key U.K. Consumer Groups based on CTC’s Explorer Quotient

Source: Canadian Tourism Commission (2010)

The Internet and Technology

With the advent of rapidly advancing Internet communications technologies, consumers

are becoming increasingly knowledgeable, capable, and sophisticated in their expectations of

tourism operators, hoteliers, and attractions, even from the most developed of countries and

destinations (Pike, 2008, p. 263; Buhalis & Law, 2000, p. 617). Deloitte (2008) informed that

tourism operators who utilize innovative technologies and leading-edge electronic marketing

Free Spirit travelers in the UK are predominantly over 50 and come to Canada

to see all the main attractions with a group while staying at the most luxurious

accommodations.

Cultural Explorers in the UK are over 50; their primary interest is to have

authentic experiences, which include exploring the ancient history and modern

cultures of the places they visit.

Authentic Experiencers in the UK are also over 50 and are driven by vast

natural settings and wonders; they also like to integrate the local culture,

authentic food and spots off the beaten track into their travels.


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resources may be better positioned to address increasing international competition (pp. 11, 13,

18). Deloitte emphasized that the use of emerging technologies in alignment with consumer use

of technologies is imperative towards tourism operators benefiting from the use of technology as

a differentiator in the increasingly competitive global marketplace (pp. 5, 18, 20).

Ritchie and Crouch (2003, pp. 5-6) stated that the influences, challenges, impacts and

opportunities of technology on tourism product development and marketing strategies are a

relatively recent phenomenon in the tourism industry. The equalizing affect of the Internet now

allows smaller destinations to compete more effectively and affordably with more powerful

destinations on a global scale. Furthermore destinations and tour operators are now more

capable of enhancing their information and promotional activities to more effectively and

realistically influence visitors expectations prior to travel, while improving the quality of the

visitor experience when visitors are at and traveling through a destination.

Innovation

Pike (2008) referred to Kincaid (2003, pp. 58-59) and advised that the Internet has

enhanced interactions with consumers through increased “access, control, speed, globalization,

and automation”. With the rapid build-out of Internet infrastructure in most parts of the

developed world and many parts of the developing world, consumers may more readily access

detailed information about potential tourism destinations, accommodations and attractions,

therefore gaining more control over purchase decisions. Demand side pressures are increasing

from consumers who have rapidly evolving access to knowledge, Internet capabilities, and

sophisticated expectations of destinations (Pike, 2008, p. 263; Buhalis & Law, 2000, p. 617).

The affects of globalization on the tourism industry have resulted in the commoditization of

many similar tourism products and services, therefore driving down prices and challenging


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tourism destinations, operators, hoteliers, and attractions to strive for differentiation through

cohesive branding strategies and value-added offerings (Pike, 2008, pp. 263, 266-268).

With the emergence of e-commerce and subsequently, e-tourism initiatives; many

participants in the tourism industry are more able to engage in communications with select target

market segments while striving to craft marketing messages conducive to tourism consumer

interests. Palmer (2004, p. 128) indicated that the Internet provides new marketing channels for

tourism operators and DMOs in concert with and beyond traditional marketing strategies. More

specifically, individual tour operations may take the initiative to build a direct-to-consumer

engagement strategy, while simultaneously participating in leveraged collaborative marketing

opportunities through local, regional and national DMO’s to further their market reach (Palmer,

2004, p. 129). These dual strategies allow the tourism operator to customize and personalize

their communications with the end consumer once direct contact has been established. However,

participating in a ‘virtual co-operation’ initiative facilitated by DMOs allows the operator to

participate in marketing activities which may have significantly expanded marketplace reach.

Furthermore, as a part of their mandate, DMOs also strive to build regional capacity and

coordinate stakeholders to ensure that a unified brand or destination ‘image’ is presented to assist

the destination region in providing a cohesive theme or personality, thereby facilitating a unique

selling proposition in comparison to other destinations (p. 128).

While a consumer decides between making a purchase through traditional or e-commerce

channels, operators who package elements of a vacation experience may ultimately be more

efficient and effective utilizing electronic channels. Palmer (2004) illustrated the complexity

(and communications opportunities) within an electronic environment for a tourist destination’s


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‘routes to market’:

Figure 10. ‘Routes to market’ for a tourism destination

Source: Palmer (2004, p. 131).

Ultimately, electronic packaging and channel communications can efficiently and effectively

assist to guide the consumer though the purchase cycle by directing them through intermediaries,

utilizing trusted brand names and/or established business relationships, therefore reducing

potential perceived security risks of a purchase decision through an e-tourism channel. The

combined strategies of accessing customers through direct communications and electronic


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channels can provide innovative, leading-edge, cost-effective access to appropriately identified

target tourism consumer market niches.

Destination Management Systems

Buhalis & Spada (2000) informed that in an increasingly competitive global marketplace,

those destinations and organizations that are able to gain stakeholder participation in developing

a cohesive tourism destination strategy through an effective Destination Management System

(DMS) will be competitively positioned to enhance ‘their collective competitiveness and long-

term sustainability (p. 57). Example of a typical DMS:

Figure 11. Structure of a typical destination management system (DMS)

Source: BVG Internet (Palmer, 2004, p. 133).

Note: TIS = Tourist Information System; CRM = Customer Relationship Management.

More succinctly, a comprehensive Destination Management System is the accumulation of real-

time information resources for tourists organized from a cluster of tourism industry stakeholder

assets within a destination region and presented in a cohesive fashion to provide a

comprehensive and coordinated delivery of queried results. Buhalis & Spada (2002, p. 42), who

referred to Archdale (1994) suggested that DMSs ‘are often limited in their scope and ambition

by their organizational structure or by their technology’. As examples, Ireland, Tyrol, Austria,

and Singapore have presented themselves as ‘active IT leaders’ by successfully gaining support


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for the development and delivery of their DMSs through collaboration between the public sector

and their respective National Tourism Organizations (p. 52). Essentially, a successful DMS

framework can enhance tourism consumers’ choice, convenience, and confidence, while

ensuring consistency of information and competitive pricing (pp. 54-55). Strong support from

the public sector, combined with investment and expertise from the private sector may position a

destination to execute a successful DMS. Emerging factors indicative of an idealized DMS

include:

Figure 12. Successful destination management systems of the future

Source: Buhalis & Deimezi (2003, p. 126).

Buhalis & Deimezi (2003, p. 288) stated that in order to facilitate the successful

development of a DMS, a (regional or national) Tourist Organization must ‘attract the support

and commitment required from both the private and public sectors’. An understanding of


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emerging trends and benefits through the provision of a DMS, as identified by the benefits of

Buhalis & Deimezi’s ‘Successful destination management systems of the future’ (Figure 12)

would assist a regional or national Tourist Organization such as the Tourism Association of

Vancouver Island or the Canadian Tourism Commission to influence stakeholders to participate

in a collaborative engagement process in the development of an effective DMS.

Media Relations

B. Nelson (personal communication, July, 2010) advised that a significant focus for HP

NHS marketing and promotional efforts is directed towards relationship marketing with

stakeholder partners. Buhalis (2003, pp. 68-69) informed that relationship marketing initiatives

may be further leveraged through the use of information and communication technologies to take

advantage of the accessibility and efficiencies available through related media vehicles.

Reciprocal relationship marketing may be utilized to leverage the media relations efforts of

strategic stakeholder partners. For example, HP NHS may receive and redirect or distribute

media releases, stories of interest, and social media communications with Royal Roads

University, effectively expanding the target market audience while enhancing the range of

communications. In this way, HP NHS and Royal Roads University create their own learning

community to build collective media relations capacity (Morrison et al, 2004, p. 203; Pike, 2008,

p. 294). “This expansion of the role of media management is consistent with the increased

pervasiveness of communications in business, driven …in large part by technological

development” (M. Conlin, personal communication, April/July, 2010).

Leadership and Clusters

In investigating clusters, the role of leadership and how a leader manages the cluster is

just as important for the individual business operator, territory and region in which the cluster is


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established, in this case Vancouver Island. Leadership cluster theory, much like clusters

themselves are based in a socio-economic and cultural context (Jackson & Perry, 2008, p.84).

Organizational clusters such as the Vancouver Island “Garden Trail” are dependent upon

individuals working together and depending upon one another to accomplish personal and

organizational goals. It is important that industry leaders build relationships based on trust

within the organization and the staff, but also externally through stakeholder relations, with

tourism operators, municipal governments, and regional tourism organizations. Weick (2001,

p.381) stated that leaders therefore need a consistent vision and defined set of goals applied

within a strategic framework.

In order to facilitate a successful cluster implementation it is important to consider the

management of the many stakeholders so that each are properly engaged (MacNeil & Steiner,

2010, p.441). This is important as not all stakeholders will contribute equal leadership or value

to the overall cause, such as the quintessential role Butchart Gardens has in the overall Garden

Trail product. As an example, the leadership group at Butchart Gardens may act as a supporter,

or mentor for smaller organizations along the way, just as TAVI may take on leadership role.

Hatley Park Marketing Strategy

B. Nelson (personal communication, July, 2010), the Director of Visitor Services at

Hatley Park National Historic Site advised that the current configuration of the attraction was

established in partnership with Parks Canada in 2004. At that time, HP NHS inherited

significant maintenance debt at the time of establishment of Hatley Park as a National Historic

Site. During this transition, the management team shifted the visitor orientation from a primary

focus as a historic site towards becoming a multi-faceted tourism destination. In addition to the

financial burden imposed at the initiation of Hatley Park as a National Historic Site, Nelson


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advised that Hatley Park continues to face challenges and opportunities posed by being

positioned within a university environment. Furthermore, other significant stakeholder

partnership relationships introduce complexity to the development of a destination management

strategy; including partnerships with local, regional, provincial and federal government agencies,

such as Parks Canada, for example. In addition, HP NHS, like most organizations has been

affected by the global economic downturn over the last two years. As a result of resource

constraints, partnership mandates and/or influences, Nelson informed that a decision was made

to limit marketing and promotional activities and maintain annual visitor numbers to

approximately 10,000 – 12,000.

In 2007 academic programming was introduced into HP NHS as a compliment to existing

tourism and historical programming. Nelson (2010) stated that the introduction of the academic

programming component provides benefit and diversity to the Hatley Park programming

portfolio. Despite the great potential for tourism development at HP NHS, there is currently no

formal marketing plan or program in place due to infrastructure constraints, including a lack of

available parking or washroom facilities necessary to support tourism growth at the site, such as

bus tours from cruise ship traffic. These physical and fiscal constraints influence the

organizational mandate and decision to limit growth and expansion until appropriate resources

are available. However; the future is bright for HP NHS, as plans remain intact to develop the

Robert Bateman Art and Environmental Centre at Royal Roads University, effectively enhancing

the academic programming component of HP NHS.

The diversity and uniqueness of HP NHS positions the destination to showcase the

myriad attributes available at the site, including; First Nations community and culture, the

historical castle development by the Dunsmuir’s, the influence of the Royal Canadian Navy and


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the site as Royal Roads Military Academy, and more recently, the establishment of Royal Roads

University. So, while HP NHS may be in a holding pattern regarding the current state of its

marketing programming, Nelson (2010) informs that the management team remains highly

engaged in relationship marketing to fortify significant stakeholder partnerships along the

tourism delivery system value chain in anticipation of a brighter future (Buhalis, 2003, pp. 68-

69). Some of these significant partners include: Royal Roads University, Tourism Victoria,

Tourism Association of Vancouver Island, BC Ministry of Tourism, Culture and the Arts, the

Canadian Tourism Commission, and Parks Canada.

Recommendations for HP NHS:

In consideration of Nelson’s depiction of the state of available resources and local factor

conditions, we make the following recommendations:

- Due to limited physical infrastructure and fiscal resources, HP NHS is advised to stay the

course in maintaining current visitor numbers in order to sustain the quality of the current

visitor experience and minimize negative social, cultural, and environmental impacts on

the site.

- HP NHS is advised to continue to focus efforts on relationship marketing with significant

stakeholder partners. This strategy will assist to keep HP NHS top of mind with

stakeholders, while facilitating increased awareness and knowledge transfer to support

development of a “learning community” of stakeholders. Ultimately, stakeholders may

become more involved in strategic problem solving, such as sourcing new or innovative

resources to support HP NHS.

- Even though HP NHS may not be ready to expand visitor numbers, it remains important


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to develop and maintain a marketing strategy plan designed to clearly identify key target

market niche’s while remaining vigilant of emerging macro-environmental trends and

evolving visitor preferences.

- The development of a corporate marketing plan should be applied in consideration of a

planning framework which incorporates stakeholder integration and cluster theories.

Furthermore, this should include consideration of the tourism delivery system along the

value chain.

- Despite some of the challenges inherent in maintaining stakeholder partnerships with

organizations like Royal Roads University and Parks Canada, these partners may also be

potential sources for additional support and resources. For example, many of the students

in graduate studies programs can offer their assistance for HP NHS in order to meet their

course requirements. MBA and MA Tourism Management students may be available to

assist with strategic marketing initiatives, especially in the case of emerging electronic

marketing strategies and web site development.

- Internet and communication technologies continue to increase their influence on tourism

industry operators and destinations. HP NHS should analyze market research resources

from stakeholder partners such as Tourism Victoria, the Tourism Association of

Vancouver Island, the BC Ministry of Tourism, Culture and the Arts, and the Canadian

Tourism Commission. Research analysts from these organizations are available to assist

in sourcing relevant market research data and providing interpretive advice.

- Analysis of competitive destinations may identify best-practices and highlight

opportunities to showcase unique characteristics of destinations enabling a destination to

develop a more effective target market strategy (Ritchie & Crouch, 2003, p. 27).


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Limitations and Considerations

Opportunities exist for further research into the area of study considering the

development of a structured marketing strategy integral to the tourism delivery system. In the

case of the production of this paper, time limitations effectively constrained the authors’ ability

to provide a more detailed analysis of the strategic stakeholder partnerships inherent or available

along the value chain. More specifically, detailed information related to the U.K. end of the

tourism delivery system was sparse at best. HP NHS may find more detailed target market niche

information available through stakeholder partners, including: Tourism Victoria, the Tourism

Association of Vancouver Island, BC Ministry of Tourism, Culture and the Arts, and the

Canadian Tourism Commission.

Conclusion

In light of a highly competitive and rapidly changing tourism environment, sustainability

for small and medium tourism operators such as Hatley Park National Historic Site may enhance

their market position through the harnessed power of a clustered tourism delivery system. As

tourism stakeholders (private and public, competitive and non-competitive), sharing resources,

knowledge, and a common vision, the greater group may effectively become a more competitive

collective entity better able to rapidly respond to emerging trends and markets. Planners may be

able to execute a more effective marketing plan if built upon a collaborative cluster framework

focused on well-defined target market niche consumers. As evidenced in this report,

collaboration does not come without challenges; however, the resulting gains through

interorganizational collaboration and a strong tourism delivery system are transforming

traditional strategies.


33

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The Evolution of a Tourism Delivery System: Marketing Garden Clusters on Vancouver Island

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