Destination Management

1. Destination Management Lecture 2 University of Applied Sciences Stralsund Leisure and Tourism Management WS 2009/2010

2. 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, … Summary of the last lecture

3. 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

4. The Role of Attractions in Tourism

5. Increased disposable income; More leisure time; Advances in transport; Education; Media images; Increased marketing. Reasons for growth in visitor attractions Part One \ The role ...

6. 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.) What are some of the trends effecting attractions? Part One \ The role ...

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

8. 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. Swarbrooke's development of destinations Part One \ The role ... \ Attractions and other sectors of tourism

9. 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 modesare often recognized as anattraction in their own right Transport Part One \ The role ... \ Attractions and other sectors of tourism

10. 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 Tour operation Part One \ The role ... \ Attractions and other sectors of tourism

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

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

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

14. The Attraction Product

15. What is a product? 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 plateor abstract as ‚a feeling‘. The utility derives from what it does for the customer. Lewis and Chambers, 1989 A product is anything that can be offered to a market for attention, acquisition, use, or consumptionthat might satisfy a want or a need. It includes physical objects, services, persons, places, organisations, and ideas. Kotler, 1994 Part One \ The attraction product

16. Tangible and intangible elements Cathedral Chairs Burning candles Visitors Silence Atmosphere Spiritual value Roller coaster Wooden constr. Seats Passengers Screams Fear Excitement Part One \ The attraction product

18. 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 Part One \ The attraction product

19. The three levels of the attraction product Ancilliary servicessuch ascatering and retailing Augmented Product Tangible Product Proceduresfor handlingcomplaints Range of ridesand on-siteattractions Core Product Quality ofservice Excitementand/oratmosphere Brand namesuch asDisneyland,Center Parks Car parking Safety Sharing the parkwith other people Weatherconditions Opening Time Services for visitorswith special needs (After Kotler, 1994) Part One \ The attraction product

20. Attractions and the product life-cycle Growth Maturity Decline Introduction Usageorsalesvolume (After Kotler 1994) Time Public and voluntary operated attractions may never ‘die’! Decline phase for the Pyramids?! Competitors?! Relaunch of natural attractions?! Part One \ The attraction product

21. The Visitor Attraction Market

22. 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 Part One \ The visitor attraction market

23. 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 Part One \ The visitor attraction market

24. Market segmentation, e.g. demographic / age Child New experiences; Other children to play with. Paternal guidance and support Teenager New experiences, Excitement, Status, More independence from 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 Part One \ The visitor attraction market

25. The Business Environment

26. The business environment and visitor attractions 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 Part One \ The business environment

27. 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 Part One \ The business environment

28. 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 Part One \ The business environment

29. Macro environment – two examples Part One \ The business environment

30. Micro environment – two examples Part One \ The business environment